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  • Depreciation Method

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    Naila Yumna
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    The document shows the calculation of straight-line depreciation for an asset purchased for $13,000 with a residual value of $1,000 and a useful life of 5 years or 100,000 miles. It calculates the annual depreciation expense of $2,400 each year and the accumulated depreciation each year-end over the 5 year useful life of the asset.

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    The document shows the calculation of straight-line depreciation for an asset purchased for $13,000 with a residual value of $1,000 and a useful life of 5 years or 100,000 miles. It calculates the annual depreciation expense of $2,400 each year and the accumulated depreciation each year-end over the 5 year useful life of the asset.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    3 views2 pages

    Depreciation Method

    Uploaded by

    Naila Yumna
    The document shows the calculation of straight-line depreciation for an asset purchased for $13,000 with a residual value of $1,000 and a useful life of 5 years or 100,000 miles. It calculates the annual depreciation expense of $2,400 each year and the accumulated depreciation each year-end over the 5 year useful life of the asset.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Purchase Date Jan 1 2017

    Cost 13,000
    Residual Value 1,000
    Useful Life 5 years
    Useful Life 100,000 miles

    1 Straight Line
    (Cost - Residual Value)/ Useful Life
    A B C D

    Annual Accumulated
    Depreciable Rate
    Date Cost (1/useful life) Expense Depreciation
    (A x B) (C + D)

    2017 12,000 20% 2,400 2,400


    2018 12,000 20% 2,400 4,800
    2019 12,000 20% 2,400 7,200
    2020 12,000 20% 2,400 9,600
    2021 12,000 20% 2,400 12,000

    31-Dec-17 Depreciation Expense 2,400


    Accumulated Depreciation 2400

    31-Dec-18 Depreciation Expense 2400


    Accumulated Depreciation 2400
    E
    Book Value
    (Cost -
    Accumulated
    Depreciation)
    10,600
    8,200
    5,800
    3,400
    1,000

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