Obj. 2 EX 9-6 Straight-line depreciation A refrigerator used by a wholesale waeh

Question

Obj. 2 EX 9-6 Straight-line depreciation A refrigerator used by a wholesale waehouse has a cost of $64,000, an estimated residu value of $5,200, and an estimated useful life of 12 years. What is the amount of the annual depreciation computed by the straight-line method? N ME HOW Obj. 2 EX 9-7 Depreciation by units-of-activity method A diesel-powered pected to have a useful operating life of 30,000 hours. During April, the tractor was operated 120 hours. Determine the depreciation for the month. tractor with a cost of $90,000 and estimated residual value of $15,000 is ex- ME HOW

Explanation / Answer

EX 9-6

Depreciable asset cost = Purchase cost-Estimated residual value

Annual depreciation = Depreciable asset cost/Estimated useful life

9-7

Purchase cost    64,000 Estimated residual value      5,200 Depreciable asset cost    58,800 Estimated useful life 12 Annual depreciation      4,900

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