George Scott had machinery that he owned for 7 years The mac

George Scott had machinery that he owned for 7 years. The machinery originally cost $150,000. George has depreciation on the machinery for Year 1 of $12,000, Year 2 is $10,000, Year 3 is $9,000. Year 4 $8,000, Year 5 is $7, 100 Year 6 is $6,000, and Year 7 is $5, 100. What is the book value at the end of each of the year? What is the total amount of depreciation at the end of the 7^th Year?

Solution

Table of depreciation at the end of each year, the decreased value of machinery and the cumulative depreciation is given below:

Thus, the value of the machinery at the end of the 7th year is $ 92,300 and the total amount of depreciation at the end of 7 years is $ 53,700.

Year	Value at start ($)	Depreciation	Value at end	Total Depre.
1	150,000	12,000	138,000	12,000
2	138,000	10,000	128,000	22,000
3	128,000	9,000	119,000	31,000
4	119,000	8,500	110,500	39,500
5	110,500	7,100	103,400	46,600
6	103,400	6,000	97,400	52,600
7	97,400	5,100	92,300	53,700