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Accounting Help Needed?
Please helpComputer equipment be acquired at the origination of the year at a cost of $56,000 that has an estimated residual good point of $3,000 and an estimated useful existence of 5 years. Determine the 2nd year’s depreciation using straight-line depreciation.
Answers: You need to bring the original purchase effectiveness and subtract the estimated residual value. Now divide by the vivacity expectency and that is your per annum depreciation.
= (56,000 - 3,000) / 5
= 53,000 / 5
= 10,600 per year depreciation
Lifetime depreciation = Yearly depreciation * number of years
= 10, 600 * 2
=21,200
However, is the question asking for the accrue depreciation over 2 years or what the 2nd year depreciation amount is?
Keep in mind that near a straight line depreciation method, the depreciation amount is indistinguishable each year. So the 2nd year depreciation amount would be like as the 1st or the 3rd.
The amount of depreciation will be the difference between the cost of the equipment and the residual value. $56,000 smaller quantity the $3,000 residual value or $53,000. The time of the equipment is 5 years.
Take the $53,000 and divide by the 5 years you will be depreciating the equipment or $10,600 per year.
Using the straight line method.you will depreciate $10,600 EACH year for 5 years.
At the terminate of the second year, the total amount depreciated is $21,200.
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