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The Sheridan Clinic purchased a new surgical laser for $70,600. The estimated salvage value is $3,600. The laser has a useful life of five years
The Sheridan Clinic purchased a new surgical laser for $70,600. The estimated salvage value is $3,600. The laser has a useful life of five years and the clinic expects to use it for 8,000 hours. It was used 1,440 hours in year 1;1,890 hours in year 2;2,160 hours in year 3;1,710 hours in year 4;1,800 hours in year 5. (a) Compute the annual depreciation for each of the five years under each of the following methods: (1) straight-line. (2) units-of-activity. (Round answers to 0 decimal place, e.g. 1500.) 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 total reported income over the five-year period
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