Show My Work (Optional)
Submit Answer
17.
DETAILS
BRECMBC9 17.I.004.
MY NOTES
ASK YOUR TEACHER
Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.)
\hline
\hline
\end{tabular}
The total cost of the asset is $815,400. The total depreciation of the asset is $715,400. The annual depreciation of the asset is approximately $55,030.77. Therefore, the answers are
Step 1 :Define the given values: the purchase cost is $800,000, the shipping charges are $0, the setup charges are $15,400, the salvage value is $100,000, and the estimated useful life is 13 years.
Step 2 :Calculate the total cost by adding the purchase cost, shipping charges, and setup charges. This gives a total cost of $815,400.
Step 3 :Calculate the total depreciation by subtracting the salvage value from the total cost. This gives a total depreciation of $715,400.
Step 4 :Calculate the annual depreciation by dividing the total depreciation by the estimated useful life. This gives an annual depreciation of approximately $55,030.77.
Step 5 :The total cost of the asset is $815,400. The total depreciation of the asset is $715,400. The annual depreciation of the asset is approximately $55,030.77. Therefore, the answers are