Question

A high-precision programmable router for shaping furniture components is purchased by Henredon for $205,000. It is expected to last 12 years and have a salvage value of $5,000. Calculate the depreciation deduction and book value for each year.

Answer 1

Depreciation will be equal to $16666.666

Step-by-step explanation:

We have given that Henredon purchased for $205000

Total time is given t = 12 years

Salvage value = $5000

We have to find the depreciation

We know that depreciation is given by

Depreciation
`=(cost-salvage\ value)/(time)=($205000-$5000)/(12)=$16666.666`

Thus the depreciation will be equal to $16666.666