ation schedule; one time used consumable cannot be depreciated. Depreciation Model 1-Straight line: Constant amount of depreciation each year or period over the depreciable life of t d-(B-SV)/N, where N: depreciable life; B: cost basis; de depreciation in year/period k BV,: book value at the end of kc am Scenario Acme purchased a coordinate measurement machine (CMM). The cost basis is $120,000 and it has a seven year depreciable of $22,000 at the end of seven years. Determine the annual depreciation amounts using SL depreciation. Solution This is your initial spending at the beginning of year 1, which w In this scenario, the cost basis 8-5 asset. Salvage value SV-S This is the end value of this equipment at the end of year seven, meaning your get the money back. This will be reported as your income, but the
ation schedule; one time used consumable cannot be depreciated. Depreciation Model 1-Straight line: Constant amount of depreciation each year or period over the depreciable life of t d-(B-SV)/N, where N: depreciable life; B: cost basis; de depreciation in year/period k BV,: book value at the end of kc am Scenario Acme purchased a coordinate measurement machine (CMM). The cost basis is $120,000 and it has a seven year depreciable of $22,000 at the end of seven years. Determine the annual depreciation amounts using SL depreciation. Solution This is your initial spending at the beginning of year 1, which w In this scenario, the cost basis 8-5 asset. Salvage value SV-S This is the end value of this equipment at the end of year seven, meaning your get the money back. This will be reported as your income, but the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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