Suncoast Food Centers has provided the following information with regard to the purchase of equipment.

Acquisition cost of equipment		$840,000
Useful life			5 years
Salvage value at end of useful life		0
Annual straight-line depreciation		$168,000
Annual income generated by asset (before deducting depreciation)		$252,000

Use a 10 percent rate to compute the imputed interest charge.

Complete the following table.

				Based on Net Book Value			Based on Gross Book Value
Year	Income Before Depreciation	Annual Depreciation	Income Net of Depreciation	Average Net Book Value	Imputed Interest Charge	Residual Income	Average Gross Book Value	Imputed Interest Charge	Residual Income
1	$252,000	$168,000	$84,000	$168,000
2	252,000	168,000	84,000
3	252,000	168,000	84,000
4	252,000	168,000	84,000
5	252,000	168,000	84,000	84,000