Answer:
Computer Equipment
a. $9,600.
Second-year Depreciation using the straight-line method is $9,600. It is the same for each of the five years.
Explanation:
1. Cost of Computer Equipment = $57,000
Less Residual Value = $9,000
Depreciable Amount = $48,000 ($57,000 - 9,000)
Useful life = 5 years
Depreciation per year, using straight-line method = $48,000/5 = $9,600.
2. The straight-line method of depreciation charges the same amount per year for depreciation.
3. Note that depreciation is an accounting technique which allocates the cost of a capital asset over its useful life. It is a means of spreading the cost over the periods for which the resource generates income.
Answer:
a. $9,600
Explanation:
Given Data
Cost of the computer $ 57000
Residual Value $ 9000
Estimated useful life 5 years
Straight Line depreciation expense remains constant for each year. Depreciation is expensed out equally each year.
Formula
Straight line depreciation Expense= Cost- Residual Value/ No of years
= $57000- 9000/5= 48000/5= $ 9600
Each year the depreciation expense will be $ 9600.
When we add depeciation for two years it is called accumulated depreciation.
Accumulated Depreciation for 2 years is = 9600 + 9600 = 19200 but depreciation is only $ 9600
