Straight line method-what annual depreciation on computer

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1. A new computer has a 4 year life span with an initial cost of $1,200 and a $200 salvage value. According to the straight-line depreciation method, what would the annual depreciation on the computer be?

2. A piece of equipment have an initial cost of $18,000 and an expected life of 3 years. At the end of year one, the piece of equipment is worth $17,000 and at the end of year two; it has a value of $15,000. And finally, at the end of the third and final year the salvage value is equal to $11,000. Applying the straight-line depreciation method, calculate the annual depreciation expense of the equipment.

3. You buy a used Tesla Model S for $30,000. It is depreciated over 6 years using the straight line method. The salvage value will be $8000. According to the straight line method, what is the book value at the end of year three?

4. An investment in machinery has an initial cost of $45,000, but after 4 years the salvage value is only $5,000. Use SOYD to calculate the accumulated depreciation after 4 years of use.

5. Using the same setup as problem 4, calculate the depreciation in year 2 using SOYD.

6. If an asset costs $15,000 and after 3 years the salvage value is $2,000, what is the book value at the end of year 2 using SOYD?

Reference no: EM13830399

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