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Calculate gwh yearly depreciation on that equipment

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Problem 1: The new CEO of George Washington Hospital a for profit hospital wants to increase efficiency of GWH data processing operations. She decides to acquire a computer system that would reduce the hospital collection by five days among other benefits. The computer system cost $2,700,000 and spent $241,175 to renovate a building to accommodate the new equipment. The useful life of the computer system is estimated to be eight years and the computer residual value is $100,000.00. Using straight line depreciation method. Calculate GWH yearly depreciation on that equipment. What would be the book value after year 5?

Reference no: EM132920217

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