Answer: To calculate the depreciation for years 2022 and 2023 using straight-line depreciation, we need to determine the depreciation expense per year. Straight-line depreciation evenly distributes the cost of the equipment over its useful life.
Step 1: Calculate the depreciable cost.
Depreciable cost = Cost of equipment - Estimated residual value
Depreciable cost = $58,100 - $5,300 = $52,800
Step 2: Calculate the annual depreciation expense.
Annual depreciation expense = Depreciable cost / Useful life
Annual depreciation expense = $52,800 / 4 years = $13,200 per year
Now, let's calculate the depreciation for each year:
Year 2022:
The equipment was purchased on July 26, 2022. To calculate the depreciation for 2022, we need to find the number of days the equipment was in use in 2022.
Number of days in 2022 from July 26th to December 31st = 159 days
Depreciation for 2022 = (Annual depreciation expense / 365) * Number of days in 2022
Depreciation for 2022 = ($13,200 / 365) * 159
Depreciation for 2022 ≈ $5,753.42
Year 2023:
Depreciation for 2023 = Annual depreciation expense = $13,200
So, the depreciation for the year 2022 is approximately $5,753.42, and the depreciation for the year 2023 is $13,200.