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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
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 agoRelated Solutions
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