Question

the equipment is expected to have a 5 year useful life and be worth about $11000 at the end of five years. Review the unjustedt balance in accumulated depreciation and prepare the necessary adjusting entry to record the monthly depreciation, if any

Answer 1

initial cost 66,000

depreciation per year: 11 000

depreciation per month: 916,666667

residual value

$66 000-916,66667\times60=11 000$

useful life 6 years