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In early January 2017, NewTech purchases computer equipment for $268,000 to use in operating activities for the next four years.

In early January 2017, NewTech purchases computer equipment for $268,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $30,000. rev: 07_27_2017_QC_CS-94103 Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.

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Expert Solution

.

Straight line depreciation
Choose numerator /   Choose denominator =   Annual Depreciation Expense
Cost minus salvage value / Estimated useful life (Years) = Depreciation expense
$238,000 / 4 = $59,500
Year Annual depreciation Year-end book value
2017   $59,500 $208,500
2018 $59,500 $149,000
2019 $59,500 $89,500
2020 $59,500 $30,000

ekkarill92 answered 3 years ago
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