White Mountain Supply Company purchases warehouse shelving for $18,300. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 9 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving? $ (b) What is the accumulated depreciation (in $) after the third year? $ (c) What is the book value of the shelving (in $) after the fifth year? $
White Mountain Supply Company purchases warehouse shelving for $18,300. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 9 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving? $ (b) What is the accumulated depreciation (in $) after the third year? $ (c) What is the book value of the shelving (in $) after the fifth year? $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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White Mountain Supply Company purchases warehouse shelving for $18,300. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 9 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.)
(a) What is the annual depreciation expense (in $) of the shelving?
$
(b) What is the accumulated depreciation (in $) after the third year?
$
(c) What is the book value of the shelving (in $) after the fifth year?
$
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