Under the straight-line method, we base the annual depreciation charge on the depreciable amount and the estimated useful life of the asset. The depreciable amount is the cost of the asset minus its estimated salvage value: Regal Company Depreciation Charge: Straight-line method Cost = (A) $107,200 Minus: Salvage Value = (B) -$4,800 Depreciable Amount = (C ) = (A) - (B) $102,400 Useful Life in Years = (D) 8 Annual Depreciation = (C ) / (D) $12,800 2009 Depreciation Charge $12,800
Under the straight-line method, we base the annual depreciation charge on the depreciable amount and the estimated useful life of the asset. The depreciable amount is the cost of the asset minus its estimated salvage value: Regal Company Depreciation Charge: Straight-line method Cost = (A) $107,200 Minus: Salvage Value = (B) -$4,800 Depreciable Amount = (C ) = (A) - (B) $102,400 Useful Life in Years = (D) 8 Annual Depreciation = (C ) / (D) $12,800 2009 Depreciation Charge $12,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Under the straight-line method, we base the annual depreciation charge on the
| Regal Company | |
|---|---|
| Depreciation Charge: Straight-line method | |
| Cost = (A) | $107,200 |
| Minus: Salvage Value = (B) | -$4,800 |
| Depreciable Amount = (C ) = (A) - (B) | $102,400 |
| Useful Life in Years = (D) | 8 |
| Annual Depreciation = (C ) / (D) | $12,800 |
| 2009 Depreciation Charge | $12,800 |
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education