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Sum-of-the-Years'-Digits Depreciation A computer was purchased on January 1 at a cost of $5,000. It has an estimated useful life of five years and an
Sum-of-the-Years'-Digits Depreciation
A computer was purchased on January 1 at a cost of $5,000. It has an estimated useful life of five years and an estimated salvage value of $500.
Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the sum-of-the-years'- digits method. For intermediate calculations, do not round your depreciation rate value and round your final answers to the nearest dollar. Round percentage amounts to two decimal places.
Computer | |||||
Depreciation Schedule | |||||
On January 1 | |||||
Year | Depreciable Cost x | Rate (%) = | Depreciation Expense | Accumulated Depreciation End of Year | Book Value End of Year |
1 | $ | $ | $ | $ | |
2 | |||||
3 | |||||
4 | |||||
5 |
|
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