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A computer with a useful life of 12 years has an initial cost of $2,300 and a salvage value of $350. The interest rate is 6%.Using the straight line method, calculate the total depreciation of the computer for the first five years.

Sagot :

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The PC will lose $117 in value overall over the first five years. The value of an organization's assets depreciates over time due to depreciation

Depreciation: What is it and how is it calculated?

  • A tangible asset's cost is spread out over the course of its useful life as part of the accounting process known as depreciation, which takes into account value erosion over time.
  • The value of an organization's assets depreciates over time due to depreciation. Discover the various depreciation expenditure calculation techniques.
  • Depreciation annually is calculated as (net book value minus residual value) x the depreciation factor (rate%). In order to get the remaining book value, deduct the depreciation charge from the current book value. Until the asset is in use, the two actions indicated above must be repeated annually.

Explanation:

Depreciation annually is calculated as (net book value minus residual value) x the depreciation factor (rate%).

($2300 - $350) * 6%.

($1950) * 6%

$1950 * 0.06.

$117.

To learn more about Depreciation refer to:

https://brainly.com/question/25806993

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