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Cengage i: CengageNOWNZIOnlir × e Accounting question! Cheg + v LT X v2 cengageno com ilmake ssignment/takeAssignment Ma n do?invoker-assignments&takeAssignmen; Sess onLocator-assignment take Ch ctice Exercises eBook Show Me How Calculator Print item Stralght-Line Depreclation A building acquired at the beginning of the year at a cost of $146,600 has an estimated residual value of $5,600 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost (b) The straight-line rate (c) The annual straight-line depreciation LGo 26 LGO 3. PE.10-03.ALGO 4. PE. 10-05.ALGO 5. PE.10-06.ALGO 6. PE 10-07.ALGO Check My Work 2 more Check My Work uses remalning Next Progress: 1/6 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Type here to search 1017 PM 2/1/2018 23

Solution

a) Depreciable cost = Cost – Residual value
Depreciable cost = $146,600 – 5,600 = $141,000

b) Straight line rate = 100 / Useful Life
Straight line rate = 100 / 10 = 10%

c) Annual straight line depreciation = Depreciable cost x Straight line depreciation rate
Annual straight line depreciation = 141,000 x 10% = $14,100