Depreciating Computer Equipment- The new computer equipment at Cruz Landscaping has a cost of $14,500, and estimated life of 8 years, and scrap value of $2100. Find (a) the annual depreciation and (b) the book value at the end of four years using the straight -line method of depreciation.

Please help, I am stuck!

Assuming Straight Line Depreciation:

Cost = $14,500
Salvage = $2,100

Depreciable Amount (Cost - Salvage) = 12,400

(a) Annual Depreciation = Depreciable Amount / Est. Life
12,400 / 8 = 1,550

(b) Net Book Value = Original Cost - Accumulated Depreciation
14,500 - (1,550 * 4) = 14,500 - 6,200 = 8,300

Quote:

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Originally Posted by Rustylovesmath

Depreciating Computer Equipment- The new computer equipment at Cruz Landscaping has a cost of $14,500, and estimated life of 8 years, and scrap value of $2100. Find (a) the annual depreciation and (b) the book value at the end of four years using the straight -line method of depreciation.

Please help, I am stuck!

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Thank you for your help I really appreciate it and understand it so much better now. You are the best!! :-)