Question

utter Enterprises purchased equipment for $63,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $8,700. Using the sum-of-the-years'-digits method, depreciation for 2018 and book value at December 31, 2018, would be

Answer 1

rate positively ..

Below is the depreciation shchedule
	Total Cost		$63,000.00
	Expected Life (in years)		5
	Salvage Value		$8,700.00
	Total Depreciation		$54,300.00
Depreciation Schedule: Sum-Of-The-Years-Digits Method
Year	Rate	Depreciation	Accumulated Depreciation	Book Value
0		$0.00	$0.00	$63,000.00
1	1/3	$18,100	$18,100	$44,900
2	4/15	$14,480	$32,580	$30,420
3	1/5	$10,860	$43,440	$19,560
4	2/15	$7,240	$50,680	$12,320
5	1/15	$3,620	$54,300	$8,700
Therefore Depreciation 2018 =		$18,100
Book value in 2018 =		$44,900