Book Value and yrs used of equipment

Sunshine21 · #1 Dec 4, 2007, 08:38 AM

If it was recorded that a piece of equipment had a book value of 49,000. Was purchased for 74,000. Had a salvage value of 4,000. and 14 yrs of useful life. How long has the company owned the equipment?

Gator1087 · Dec 4, 2007, 11:20 AM

I assume you're using straight-line depreciation so:
74,000-4,000=70,000 your depreciation base
70,000/14yrs = 5,000 depreciation per year
74,000-49,000= 25,000 accumulated depreciation
25,000/5,000= 5 years



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