Answer:
There are several question
Explanation:
You do not provide the equipment adquisition value.
I will help you with this incomplete question, by giving you the procedure to reach the answers of your problem:
The <u>information about concerts is not useful </u>to determinate the straight-line depreciation, so you will ignore that part, on striaght-line you must focus on the espected life of the long-term asset, the adquisition value and the salvage value.
For depreciation expense for year 1.
You will do (adquisition value - salvage value ($2,000)) /4 years
The first part means, the ammount from which the band purchase the equipment, less the ammount they can sell it at the end of his useful life. This will be the <em>ammount subject to depreciation.</em>
Last part will be to divide this by the useful life in year.
Book value at the moment of revision will be:
<em>book value = </em>adquisition value - acumulated depreciation
Were the acumulated depreciation will be sum of the depreciation expense over the years. In this case we only have 1 depreciation so it will be
acumulated depreciation: dep expense year 1
<em />
Remaining depreciable cost at year 1 will be:
<em>amount subject to depreciation - acumulated depreciation</em>
remember that amount subject to depreciation will be:
adquisition value - salvage value
and the acumulated depreciation is the sum of the depreication of each year.
For depreciation expense for year 2
Then you will do (adquisition value - salvage value) / 3 years
Because the expected life decrease this value will be higher than year 1
