Your roommate decides to buy an awesome computer for $10,000 atthe end of the year....

Your roommate decides to buy an awesome computer for $10,000 at the end of the year. He/she thinks the computer will last for 5 years. At the end of the first year, he/she upgrades the RAM (a component inside the computer) for $1,000 but it is only expected to last 3 years. At the end of the second year, he/she adds a new cooling system to the computer for $2,000 and it is expected to last for the remaining life of the computer.

What is depreciation in year 1?
What is depreciation in year 3?
What is depreciation in the final year?

Solutions

Expert Solution

for finding out the straight line depreciation in excel, we have to use sln function as shown in picture. for finding total we can use sum function

depreciation in year 1 = $2000

depreciation in year 3 = $ 3000

depreciation in the final year = $ 2666.67

jeff jeffy answered 2 years ago

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