Use straight line (SL) depreciation to determine a. annual depreciation charge (5 points) and b. annual book values for the life
1 answer:
You might be interested in
On December 31, 2022, the book value of the equipment comes out to be $36,840 with monthly depreciation of $620.
Option D is the correct answer.
<h3>What is meant by depreciation?</h3>Depreciation is a method that applies to tangible fixed assets where the fall in the value of an asset has been recorded.
Given values:
The purchase cost of equipment: $44,280
Monthly depreciation: $620
<u>Step-1</u> Computation of annual depreciation charges:
<u>Step-2</u> Computation of book value of the equipment at the year-end:
Therefore, when the company purchases equipment at $44,280 with annual depreciation is $7,440, then the equipment's book value comes out to be $36,840 at the year-end.
Learn more about the depreciation in the related link:
#SPJ1