Wouldn't r = -10?
because you'd multiply -7 by 3, to get rid of the division.
then you'd add 11.
A. Using the straight-line depreciation method, we can
calculate for the depreciation using the formula:
d = (P – S) / n
Where,
P = present value
S = salvage value
n = number of life years
Substituting the given values:
d = ($465,000 - $45,000) / 15
d = $28,000
The depreciation for the first year was $28,000 and the
book value is $437,000.
B. Calculating for the book value at the end of eight
year:
BV (8) = $465,000 – 8 * $28,000
BV (8) = $241,000
<span>Since the equipment was sold at only $235,000 therefore
there was a loss of $6,000.</span>
<span>C. Chart of accounts is needed.</span>
1. 2/3
2. 9/10
3. 7/12
4. 10/12
5. 8/10
6. 6/8
7. 1
8. 7/8
9. 6/10
10. 1
11. 1
12. 6/10
13. 1 2/5
14. 1 6/8
15. 2
16. 70/100
17. 9/10
18. 3
