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Karo-lina-s [1.5K]
3 years ago
9

Computer equipment was acquired at the beginning of the year at a cost of $70,700 that has an estimated residual value of $4,200

and an estimated useful life of 5 years. a. Determine the depreciable cost. $fill in the blank 1 b. Determine the straight-line rate. fill in the blank 2 % c. Determine the annual straight-line depreciation. $fill in the blank 3
Business
1 answer:
Evgesh-ka [11]3 years ago
5 0

Answer:

a, The depreciable cost when using the straight line method is;

= Cost of asset - Residual value

= 70,700 - 4,200

= $66,500

b. As the rate is uniform over the life of the asset, the rate is 100% divided by the life of the asset.

= 100%/5

= 20%

c. Annual depreciation will therefore be;

= Depreciation rate * depreciable cost

= 20% * 66,500

= $‭13,300‬

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Following are the solution to the given point.

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