Assuming you are using the straight line method, the depreciation expense in the first year is: cost - residual value, divided by the economic lifetime
= (5000 - 0) / 3 = 1666.67
daily enterprise purchasing 10.0 million machine. It will cost 50,000 to transport and install the machine. the machine has a depreciable life of 5 year and will have no salvage value If daily use straight-line depreciation what are the yearly depreciation expense associated with this machine?
Formula for calculating depreciation value Annual depreciation value = (Total cost - salvage value (if any) ) / useful life
Formula for straight line depreciation is as follows: Depreciation = (Cost of asset - salvage value) / useful life of asset
Straigt line depreciation = (total cost of asset - salvage value)/ useful life of asset.
The formula for a straight line depreciation method is the Cost minus the Salvage Value over the Life in Number of Periods which will equal Depreciation.
The annual depreciation expense is (6000-400)/7 = $828.57. By year 4, accumulated depreciation would be 828.57 * 3.5 = $2899.99. Therefore, the book value at the time of sale is 6000 - 2899.99 = $3100. Since the machine was sold for $450, Jayco incurred a loss of $3100 - $450 = $2650.
Annual depreciation is as follows: Annual depreciation = (actual cost - salvage value ) / useful life of asset annual depreciation = 170000 - 8500 / 4 = 40375 Annual depreciation with 150 percentage decline method = 40375 * 1.5 = 60563
Salvage value is defined as the value of the product after its useful life .In other words it is the value after depreciation. Salvage value also known as scrap value.
True
Straight line method of depreciation is that under which any asset is depreciated in equal amount for every year till salvage value. Formula for straight line method: Depreciation = (Cost price - Salvage Value)/Number of years
The annual depreciation for the refrigerator using the straight-line method would be calculated as follows: (Cost of the refrigerator - Estimated salvage value) / Useful life = ($198,500 - $30,500) / 15 years = $168,000 / 15 years = $11,200 per year.
The straight-line method of depreciation depreciates a capital asset evenly over its useful life until it reaches its salvage value (i.e., the value at which the asset can be sold at the end of its useful life). As an equation: Annual S/L Depreciation = (Cost - Salvage Value) / Useful Life