Question

1: Adventure Airlines recently purchased a new baggage crusher for 50,000$. It is expected to last for 14 years and have an estimated salvage value of 8,000$. Determine 1. The depreciation charge on the crusher for the third year of its life. 2. The book value at the end of 8 years, using SOYD depreciation

2:A piece of machinery costs 35,000$ and has an anticipated 7,000$ scrap value at the end of its  10-year useful life. Compute the depreciation and book values for the machinery by the straight-line  method.

Answer 1

Step 1

We’ll answer the first question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered.

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Step 2

Under Sum of year's digit (SOYD) method, more depreciation is amortized over the initial years of the asset's life.

1. The depreciation charge on the crusher for the third year of its life = $4,800

2. The book value at the end of 8 years = $16,400

1. The depreciation charge on the crusher for the third year of its life = $4,800

2. The book value at the end of 8 years = $16,400