contestada

A building acquired at the beginning of the year at a cost of $123,800 has an estimated residual value of $4,800 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost $ (b) The straight-line rate % (c) The annual straight-line depreciation

Respuesta :

Answer:

A. $119,000

B. 10%

C.$11,900

Explanation:

Deprecation is a method used in expensing the cost of an asset.

The depreciable cost = Cost of asset - Salvage value = $123,800 - $4,800 = $119,000

The straight line rate = 1/10= 0.1 = 10%

annual straight-line depreciation = depreciable cost × straight line rate = $119,000 × 0.1 = $11,900

I hope my answer helps you

Otras preguntas