Answer:
Explanation:
Giving the following information:
NewTech purchases computer equipment for $267,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $25,000.
Depreciable value= 267,000 - 25,000= 242,000
Year 1:
Beginning book value= 267,000
Depreciation= (267,000/4)*2= 133,500
Ending book value= 133,500
Year 2:
Beginning book value= 133,500
Depreciation= (133,500/4)*2= 66,750
Ending book value= 66,750
Year 3:
Beginning book value= 66,750
Depreciation= (66,750/4)*2= 33,375
Ending book value= 33,375
Year 4:
Beginning book value= 33,375
Depreciation= (33,375/4)*2= 16,688
Ending book value= 16,688
