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2 years ago

Revision of Depreciation

Business

1 answer:

alexgriva [62]2 years ago

3 0

The annual depreciation expense is $17,000.
The book value at the end of the twentieth year of use is $425,000.
The depreciation expense for each of the remaining 20 years is $20,000.

<h3>What is the annual depreciation expense?
</h3>

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Annual depreciation = ($765,000 - $153,000) / 36 = $17,000

Book value in the 20th year = cost of the asset - accumulated depreciation

765,000 - (17,000 x 20) = $425,000

Depreciation expense for each of the 20 years = (book value - new residual value) / new useful life

(425,000 - $25,000) / 20 = $20,000

To learn more about straight line depreciation, please check: brainly.com/question/6982430

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