Depreciation Schedule 1

RUNNING HEAD: REMAINING VALUE

Straight-line Method

Carrie Gray

April, 20, 2008

Phase-4 DB

MAT105-0802A-06

Professor: Kathy Ryan

Colorado Technical University Online

 Depreciation Schedule 2

Straight-line Method

A. A $1,200 postage printing system depreciated using the straight-line method over 4

years. In your depreciation schedule, give the following information for each year: the year’s

depreciation, the accumulated depreciation, and the year’s end-of-book value.

Y Depreciation Accumulated End of Year

EAR Depreciation Book Value
1 $250 $250 $950
2 $250 $500 $700
3 $250 $750 $450
4 $250 $1000 $200

Cost of the asset $1200

Less: Expected salvage value – $200

Years of estimated useful life 4

Depreciation per year $ 250

Scenario D

D. Consider a system of notebook computers for a college math laboratory. The set of

computers costs $10,000 and will be salvaged for $2,000 at the end of a 3-year period. Prepare a

depreciation schedule using a 150%-declining balance rate for the system. The depreciation

schedule should include the following information for each year: the year’s depreciation, the

accumulated depreciation, and the year’s end-of-book value.

Multiply (3years) 0.33333×(150%) 1.5=0.499999999 (round) 50%, accumulated, and

annual depreciation remain the same for year 1, for year 2, add 5000+2000=7,000=accumulated,

and end of year balance is 10,000-7500=2500. 3rd year end value is 10,000-8000=2000, and for

accumulated depreciation for the year is 2500x50=1250.

 Depreciation Schedule 3

Depreciati Accumulated End of Year

Year
on Depreciation Book Value
1 $5000 $5000 $5000
$2500 $7500 $2500
2
3 $1250 $8000 $2000
 Depreciation Schedule 4

References

Cleaves, C & Hobbs, M. (2005), Business Math (7th Ed.). Upper Saddle River, NJ. Prentice

Hall.