First two years
Straight line Depreciation=Useful life of an Asset(Cost of Asset−Residual value)
Cost of Asset=Y
Residual value=Salvage value=18,000
Useful life=8
Assuming Y=100,000
Straightline Annual Depreciation= 8(100,000−18,000) =10,250
The equipment depreciates 10,250 annually.
For the first two years,
Depreciation=10,250×2=20,500
At end of 5 Years
Book value=TotalCost−Accumulated Depreciation
Accumulated Depreciation=10,250×5=51,250
Total cost=100,000
Book Value=100,000−51,250=48,750
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