Answer:
Explanation:
Depreciation cost :
2016: <u> expected useful life</u>
Cost - salvage value X usage
= <u>140,000</u>
24,300-700
=5.93*28,000 = $166,101.69
2017: <u>expected useful life</u>
Cost - salvage value X usage
= <u>140,000</u>
24,300-700
=5.93*33,000 = $195,762.71
Depreciation Expense:
2016:<u> (cost-salvage value)*actual activity performed</u>
total estimated useful life
= <u>(24,300-700)*28,000</u>
140,000
=$4,720
2017: <u>(cost-salvage value)*actual activity performed</u>
total estimated useful life
= <u>(24,300-700)*33,000</u>
140,000
=$5,562.86
