Conne Saved QS 83 Straightline depreciation LO P1 On January

Conne Saved QS 8-3 Straight-line depreciation LO P1 On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $67,000. The band estimates it will use this equipment for five years, during which time it anticipates performing about 200 concerts. It estimates that after five years it can sell the equipment for $2,000. During year 2017, the band performs 45 concerts. Compute the year 2017 depreciation using the straight-line method Annual Choose Numerator: Choose Denominator: I = 1 Depreciation ?Prev 210, 23111 N

Solution

Solution: Deprecition using straight line method:

= Cost of asset- salvage value/no of years of use

= 67000-2000/5

=13000 per year