Question

In: Finance

Consider the purchase of a new combine. The specific information is:

Consider the purchase of a new combine. The specific information is:

Purchase price = $750,000.00,                    Purchase date = Jan 1, 2020

Useful life =6 years,                                     Salvage value = $100,000.00          

Complete each depreciation table.

Note: each highlighted box is worth 1 point – for a total of 10 points possible

  1. Fill in the table using the straight-line method

Year

Remaining value at beginning of year

Depreciation

Remaining value at end of year

2020




2021




2022




2023




2024




2025





Solutions

Expert Solution

Value at beginning Depreciation Value at End
01-01-2020 750000 108333.333 641666.667
01-01-2021 641666.6667 108333.333 533333.333
01-01-2022 533333.3333 108333.333 425000
01-01-2023 425000 108333.333 316666.667
01-01-2024 316666.6667 108333.333 208333.333
01-01-2025 208333.3333 108333.333 100000

Depreciation = (750000-100000)/6 = 108333.3333

jeff jeffy answered 2 years ago
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