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The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,000. The laser has a useful life of five years
The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1:2,200 hours in year 2; 2,400 hours in year 3; 1,800 hours in year 4:2,000 hours in year 5. Compute the annual depreciation for each of the five years under straight-line and units-of-activity methods. Straight-line Units-of-Activity Year 1 $ Year 2 Year 3 Year 4 Year 5 Total $ If you were the administrator of the clinic, which method would you deem as most appropriate? Which method would result in the lowest reported income in the first year? Which method would result in the lowest reported income in the first year? Which method would result in the lowest total reported income over the five-year period
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