. HR Block purchased a big HP scanner/photocopier at a cost of $12,000 on Dec 31st,...

. HR Block purchased a big HP scanner/photocopier at a cost of $12,000 on Dec 31st, 2008, They started using the copier immediately on Jan 1st, 2009. The machine is expected to have a scrap value (end value) of $0 at the end of its four-year useful life. HR Block has a December 31 year end. (Show your calculations – no points will be given without that): Instructions: a. Using the straight line method find the depreciation per year b. What is the accumulated depreciation and Net book value of the photocopiers as of December 31 , 2010

Expert Solution

Compute the annual depreciation, using the equation as shown below:

Annual depreciation = Cost of Scanner/ Estimated life

= $12,000/ 4 years

= $3,000

Hence, the annual depreciation is $3,000.

Compute the accumulated depreciation as of 31^st December 2010, using the equation as shown below:

Accumulated depreciation = Annual depreciation*Time

= $3,000*2 years

= $6,000

Hence, the accumulated depreciation as of 31^st December 2010 is $6,000.

Compute the net book value as of 31^st December 2010, using the equation as shown below:

Net book value = Cost of scanner – Accumulated depreciation

= $12,000 – $6,000

= $6,000

Hence, the net book value as of 31^st December 2010 is $6,000.

jeff jeffy answered 1 year ago

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