Please include your work so I know how to do it! Thanks!:) 1. On January 2, 2013
ID: 2380985 • Letter: P
Question
Please include your work so I know how to do it! Thanks!:)
1.
On January 2, 2013, the Cerritos Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During year 2013, the band performs 45 concerts.
Compute the year 2013 depreciation using the straight line method
On January 2, 2013, the Cerritos Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During year 2013, the band performs 45 concerts.
Explanation / Answer
Book value at point of revision:
Depreciation for Year 1: 15 950*
*(65 800 - 2 000)/4
Cost: 65 800
Less:Accumulated Depreciation: 15 950
Book Value: 49 850
Remaining depreciable cost
Year 1: 65 800 - 2 000 = 63 800
Year 2: 49 850 - 2 000 = 47 850