Please how do i calculate this problem. An asset was purchased for $150,000. It had an estimated salvage value of $30,000 and an estimated useful life of 10 years. After 5 years of use, the estimated salvage value is revised to $24,000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in 6 years would be?

For the first 5 years,

annual depreciation = (150,000 - 30,000)/10 = 12,000 / year
total depreciation after first 5 years
= 60,000
Residual value = 150,000 - 60,000
= 90,000
New salvage value after the 5th year
= 24,000
New annual depreciation as of the sixth year
=(90,000-24,000)/5
=13,200

A company purchased a truck for $50,000 on July 1, 2009. The truck has an estimated

useful life of 5 years and will have no salvage value. It is estimated that the truck can be driven for 150,000 miles. The truck was driven for 18,000 miles during 2009. If the goal is to reduce taxable income to the lowest amount, which method should be elected and how much depreciation can be deducted in 2009?

To calculate the depreciation expense in year 6, we need to determine the annual depreciation for the asset.

The formula for straight-line depreciation is:

Annual Depreciation Expense = (Initial Cost - Salvage Value) / Useful Life

Given:
Initial cost = $150,000
Salvage value (old) = $30,000
Salvage value (revised) = $24,000
Useful life = 10 years

The initial annual depreciation expense is:

Annual Depreciation Expense = ($150,000 - $30,000) / 10
Annual Depreciation Expense = $120,000 / 10
Annual Depreciation Expense = $12,000

However, after 5 years of use, the salvage value is revised to $24,000.

To calculate the new annual depreciation expense, we need to use the updated salvage value:

Remaining Book Value = Initial Cost - Accumulated Depreciation

Accumulated Depreciation after 5 years = Annual Depreciation Expense * Years of Depreciation
Accumulated Depreciation after 5 years = $12,000 * 5
Accumulated Depreciation after 5 years = $60,000

Remaining Book Value after 5 years = Initial Cost - Accumulated Depreciation after 5 years
Remaining Book Value after 5 years = $150,000 - $60,000
Remaining Book Value after 5 years = $90,000

Now we can calculate the revised annual depreciation expense:

Annual Depreciation Expense (revised) = (Remaining Book Value - Revised Salvage Value) / Remaining Useful Life
Annual Depreciation Expense (revised) = ($90,000 - $24,000) / (10 - 5)
Annual Depreciation Expense (revised) = $66,000 / 5
Annual Depreciation Expense (revised) = $13,200

Therefore, the depreciation expense in year 6 would be $13,200.

To calculate the depreciation expense in the 6th year, you would follow the steps below:

Step 1: Calculate the total depreciation.

Total depreciation is determined by subtracting the salvage value from the initial cost of the asset. In this case, the initial cost is $150,000, and the revised salvage value is $24,000.

Total depreciation = Initial cost - Revised salvage value
Total depreciation = $150,000 - $24,000
Total depreciation = $126,000

Step 2: Determine the annual depreciation expense.

To calculate the annual depreciation expense, divide the total depreciation by the useful life of the asset. In this case, the useful life is 10 years.

Annual depreciation expense = Total depreciation / Useful life
Annual depreciation expense = $126,000 / 10
Annual depreciation expense = $12,600

Step 3: Calculate the accumulated depreciation after 5 years.

The accumulated depreciation after 5 years can be obtained by multiplying the annual depreciation expense by the number of years of use. In this case, the asset has been used for 5 years.

Accumulated depreciation = Annual depreciation expense * Number of years
Accumulated depreciation = $12,600 * 5
Accumulated depreciation = $63,000

Step 4: Calculate the depreciation expense in the 6th year.

Since the estimated useful life remains the same (10 years), the depreciation expense in the 6th year can be obtained by subtracting the accumulated depreciation after 5 years from the total depreciation.

Depreciation expense in the 6th year = Total depreciation - Accumulated depreciation
Depreciation expense in the 6th year = $126,000 - $63,000
Depreciation expense in the 6th year = $63,000

Therefore, the depreciation expense in the 6th year would be $63,000.