Inventory and Depreciation Concepts
Assume that an organization purchased two pieces of equipment on April 1st (the first day of its fiscal year), as follows:
(1) One laboratory equipment that cost $530,000 and has an expected life of 8 years. The salvage value is 10 percent of the cost. No equipment was traded in on this purchase.
(2) One radiology equipment that cost $675,000 and has an expected life of 6 years. The salvage value is 15 percent of the cost. No equipment was traded in on this purchase.
Your Tasks
For each piece of equipment:
1. Compute the straight-line depreciation for:
a) The lab equipment
b) The radiology equipment
2. Compute the double declining balance depreciation for:
a) The lab equipment
b) The radiology equipment
Does anyone know the steps, into solution?
i tried this method
Laboratory Equipment Straight Line Method Depreciation = (530000 - 8% of 530000) / 8 = 60950?
1 answer