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kansas enterprises purchased equipment for $75,000 on january 1, 2021. the equipment is expected to have a five-year service life, with a residual value of $8,700 at the end of five years. using the straight-line method, depreciation expense for 2022 and the book value at december 31, 2022, would be:

Respuesta :

Annual depreciation= $13,260

Book value= $48,480

Purchase price= $75,000

Useful life= 5 years

Salvage value= $8,700

calculate the depreciation expense,

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (75,000 - 8,700) / 5

Annual depreciation= $13,260

the book value:

Book value= purchase price - accumulated depreciation

Book value= 75,000 - (13,260*2)

Book value= $48,480

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