(DEPRECIATION SCHEDULE A)
A. A $1200 postage printing system depreciated using the straight-line method over 4-years. In your depreciation schedule, give the following information for each year:
1.The year's depreciation
2.The accumulated depreciation
3.The year's end-of-book value
I'm trying to figure out the same problem. We'll just have to read the book
$1200/4= $300
The item depreciates $300 per year, leaving an end-of-book value of $0 since there is no scrap or salvage value. The accumulated value is $300 added each year. For example, $300 depreciation the first year, making the end-of-year book value for the first year $900. There is no accumulated depreciation in the first year other than the first $300.
The second year depreciates another $300, which adds another $300 to the accumulated depreciation totaling $600, making the end-of-year book value for the second year $600.
The third year, it depreciates another $300, accumulating the depreciation to $900, thus making the end-of-year book value for this year $300. I am sure you can figure out the fourth year on your own. It is very simple.
To calculate the depreciation schedule for the postage printing system using the straight-line method over 4 years, you need to determine the annual depreciation, accumulated depreciation, and the year-end book value for each year.
1. Calculate the annual depreciation:
To calculate the annual depreciation, divide the initial cost of the postage printing system by the useful life in years.
Annual Depreciation = Cost of the printing system / Useful life
Given:
Cost of the postage printing system = $1200
Useful life = 4 years
Annual Depreciation = $1200 / 4
Annual Depreciation = $300
2. Calculate the accumulated depreciation:
The accumulated depreciation represents the total depreciation accumulated over the years.
Accumulated Depreciation = Annual Depreciation * Number of years
Year 1:
Accumulated Depreciation = $300 * 1
Accumulated Depreciation = $300
Year 2:
Accumulated Depreciation = $300 * 2
Accumulated Depreciation = $600
Year 3:
Accumulated Depreciation = $300 * 3
Accumulated Depreciation = $900
Year 4:
Accumulated Depreciation = $300 * 4
Accumulated Depreciation = $1200
3. Calculate the year-end book value:
The year-end book value represents the remaining value of the asset after depreciation. It is calculated by subtracting the accumulated depreciation from the initial cost of the asset.
Year-End Book Value = Cost of the printing system - Accumulated Depreciation
Year 1:
Year-End Book Value = $1200 - $300
Year-End Book Value = $900
Year 2:
Year-End Book Value = $1200 - $600
Year-End Book Value = $600
Year 3:
Year-End Book Value = $1200 - $900
Year-End Book Value = $300
Year 4:
Year-End Book Value = $1200 - $1200
Year-End Book Value = $0
So, the depreciation schedule for the postage printing system using the straight-line method over 4 years would be as follows:
Year 1:
- Depreciation: $300
- Accumulated Depreciation: $300
- Year-End Book Value: $900
Year 2:
- Depreciation: $300
- Accumulated Depreciation: $600
- Year-End Book Value: $600
Year 3:
- Depreciation: $300
- Accumulated Depreciation: $900
- Year-End Book Value: $300
Year 4:
- Depreciation: $300
- Accumulated Depreciation: $1200
- Year-End Book Value: $0