As of December 31, 2010, the assets listed on the balance sheet of Bank A were: $1.5 million in cash reserves, and $6 million in
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Answer:
Depreciation to be recorded each year in income statement = $8,000
Accumulated depreciation at end of year 1 = $8,000
Accumulated depreciation at end of year 2 = $8,000 + $8,000 = $16,000
Explanation:
Provided information,
Taxi purchased for a value of $36,000
Expected salvage value = $4,000
Estimated life of asset = 4 years
Using straight line depreciation we have,
Depreciation each year =
Depreciation to be recorded each year in income statement = $8,000
Accumulated depreciation at end of year 1 = $8,000
Accumulated depreciation at end of year 2 = $8,000 + $8,000 = $16,000