assune that MHS purchased two additional pieces of equipment on April 1st of its

Question

assune that MHS purchased two additional pieces of equipment on April 1st of its fiscal year as follows

(1) the laboratory equipment cost $300,000 and has an expected life of 5 years. The salvage value is 5 percent of cost. No equipment was traded in on this purchase.

(2) The radiology equipment cost $800,000 and has an expected life of 7 years. The salvage is 10% of cost. No equipment was traded in on this equipment.

for both pieces of equipment:

1. compute the straight-line depreciation.

2. compute the double declining balance depreciation.

Explanation / Answer

1 SLM Cost of machine $                300,000.00 Salvage value (5%*$300,000) $                  15,000.00 $                285,000.00 Life of equipment 5yrs Depreciation as per SLM 285,000/5 $                  57,000.00

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.