* CengageNOW2 | Online teachin x+ignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false它 ☆SU loginO Digital University |..Tenant Portal - Login围eBookShow Me HowE Print ItemStraight-Line DepreciationA building acquired at the beginning of the year at a cost of $93,600 has an estimated residual value of $3,600 and an estimated useful lifeof 10 years. Determine the following:a. The depreciable cost90,00010b. The straight-line ratec. The annual straight-line depreciation90,000XFeedbackV Check My Workifference betweethe asset's initial cost and its residual value. The residual value is the estimated value atDepreciable cost is thethe end of the useful life.Straight-line depreciation allocates the depreciable cost of the asset equally over the expected useful life.10:22 PM46%-2°F12/16/2021F11F10F8F71%/6.4.R.* CO5

Solution: straight line depreciation is the annual deterioration of non current assets based on the useful life of the asset and its depreciable base. Therefore, a. Depreciable cost = Cost - residual value = 93600 - 3600 = 90,000 b. Straight line rate = 1/10 = 10% c. annual straight line depreciation = depreciable cost * straight line rate = 90000*10% = 9,000

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A building acquired at the beginning of the year at a cost of $93,600 has an estimated residual value of $3,600 and an estimat of 10 years. Determine the following: a. The depreciable cost 90,000 V 10 V % b. The straight-line rate c. The annual straight-line depreciation 90,000 x

A building acquired at the beginning of the year at a cost of $93,600 has an estimated residual value of $3,600 and an estimat of 10 years. Determine the following: a. The depreciable cost 90,000 V 10 V % b. The straight-line rate c. The annual straight-line depreciation 90,000 x

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

* CengageNOW2 | Online teachin x
+
ignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
它 ☆
SU login
O Digital University |..
Tenant Portal - Login
围
eBook
Show Me How
E Print Item
Straight-Line Depreciation
A building acquired at the beginning of the year at a cost of $93,600 has an estimated residual value of $3,600 and an estimated useful life
of 10 years. Determine the following:
a. The depreciable cost
90,000
10
b. The straight-line rate
c. The annual straight-line depreciation
90,000
X
Feedback
V Check My Work
ifference betwee
the asset's initial cost and its residual value. The residual value is the estimated value at
Depreciable cost is the
the end of the useful life.
Straight-line depreciation allocates the depreciable cost of the asset equally over the expected useful life.
10:22 PM
46%
-2°F
12/16/2021
F11
F10
F8
F7
1%/
6.
4.
R.
* CO
5

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