Answers
As per SLM | ||||
Income Statement | Balance Sheet | |||
Year | Depreciation Expense | Cost | Acc Depreciation | Book Value |
At Acqui. | 37,800.00 | 37,800.00 | ||
1 | 11,600.00 | 11,600.00 | 26,200.00 | |
2 | 11,600.00 | 23,200.00 | 14,600.00 | |
3 | 11,600.00 | 34,800.00 | 3,000.00 |
* Depreciation expense = (Cost- Residual Value )Useful life | |||
=($37800-$3000)/3=$11600 |
As per Unit of Production Method | ||||
Income Statement | Balance Sheet | |||
Year | Depreciation Expense | Cost | Acc Depreciation | Book Value |
At Acqui. | 37,800.00 | 37,800.00 | ||
1 | 8,352.00 | 8,352.00 | 29,448.00 | |
2 | 19,140.00 | 27,492.00 | 10,308.00 | |
3 | 7,308.00 | 34,800.00 | 3,000.00 |
* Depreciation expense =( (Cost- Residual Value )/ Estimated Payment over three Year)* Expected Paymet TXN in year |
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