Suburban Production, Inc. purchased a piece of display equipment that cost $20,500. The display equipment has an estimated useful life of 4 years and a residual value of $2500. Using the straight-line method of depreciation, calculate the following for the first two years. (If necessary, round your answers to the nearest cent.) Annual depreciation expense. Accumulated depreciation at year-end. Book value at year-end.

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Mathematics

Tess Mcclure

23 April, 05:23

Suburban Production, Inc. purchased a piece of display equipment that cost $20,500. The display equipment has an estimated useful life of 4 years and a residual value of $2500. Using the straight-line method of depreciation, calculate the following for the first two years. (If necessary, round your answers to the nearest cent.) Annual depreciation expense. Accumulated depreciation at year-end. Book value at year-end.

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Douglas Mcmahon · Answer 1

Annual depreciation expenses is

[Equipment cost-residual value]:estimated useful life

Annual depreciation expenses

(20,500-2,500) : 4=4,500

Accumulated depreciation at the end of 2 years I

4,500*2=9,000

Book value at the end of 2 years is

20,500-9,000=11,500