Revision of Depreciation

Equipment with a cost of $899,100 has an estimated residual value of $89,100, has an estimated useful life of 27 years, and is depreciated by the straight-line method.

a. Determine the amount of the annual depreciation. $

b. Determine the book value after 14 full years of use. $

c. Assuming that at the start of the year 15 the remaining life is estimated to be 20 years and the residual value is estimated to be $93,100, determine the depreciation expense for each of the remaining 20 years. $

Revision of Depreciation

A building with a cost of $371,250 has an estimated residual value of $74,250, has an estimated useful life of 27 years, and is depreciated by the straight-line method.

a. What is the amount of the annual depreciation? $

b. What is the book value at the end of the fifteenth year of use? $

c. If at the start of the sixteenth year it is estimated that the remaining life is 15 years and that the residual value is $11,250, what is the depreciation expense for each of the remaining 15 years? $