[uscg911]

I'm preparing an income statement for a group project and have a few questions.
If you buy furniture at a cost of $26,000 on Jan 2nd 2009 with estimated useful life of 14 years, would you only put the depreciation expense of $1857 in the income statement?

[Just Looking]

That's right, assuming there is no salvage value and you are using straight-line depreciation.

14 years is pretty high for the useful life. Was this amount given to you?

[uscg911]

there is a salvage value of $5,000 but I didn't think you would include that on an income statement. Yes, 14 years was given to me using straight line.

[Just Looking]

To compute depreciation, you do it on the cost less salvage value. At the end of the 14 years, there should be $5000 left in book value.