Assignment

Q1. ABC is considering the purchase of a second hand scanning microscope at a cost of $
10500 with an estimated salvage value of $500 and a projected useful life of four years.
Determine the straight line.

Given:
The cost of second hand scanning microscope = $10500

The salvage value: $500

Useful life: 4 years

Formula
Cost - salvage value

Useful life

Depreciation = 10500 - 50

Depreciation = 2500

Year Cost of microscope Depreciation Cost of microscope

1 10500 2500 8000

2 8000 2500 5,500

3 5,500 2500 3000

4 3000 2500 500

Najeebullah Page 1