Justice Company purchased a machine for $50,000 two years ago. The machine had no residual value...
Homework Answers
Current book value = $40,000
Working
| Straight line Method | ||
| A | Cost | $ 50,000 |
| B | Residual Value | $ 0 |
| C=A - B | Depreciable base | $ 50,000 |
| D | Life [in years left ] | 10 |
| E=C/D | Annual SLM depreciation | $ 5,000.00 |
.
| Depreciation schedule-Straight line method | ||||
| Year | Book Value | Depreciation expense | Accumulated Depreciation | Ending Book Value |
| 1 | $ 50,000.00 | $ 5,000.00 | $ 5,000.00 | $ 45,000.00 |
| 2 | $ 45,000.00 | $ 5,000.00 | $ 10,000.00 | $ 40,000.00 |
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Justice Company purchased a machine for $50,000 two years ago. The
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