Consider an asset that costs $600,000 and is depreciated straight-line to zero o
ID: 2770270 • Letter: C
Question
Consider an asset that costs $600,000 and is depreciated straight-line to zero over its 5-year tax life. Fill in the depreciation schedule and resulting book value given below: Asset Cost=$600,000
Depreciation Expense YR1=________ Book Value Yr 1=____________
Depreciation Expense YR2=________ Book Value Yr 2=____________
Depreciation Expense YR3=________ Book Value Yr 3=____________
Depreciation Expense YR4=________ Book Value Yr 4=____________
Depreciation Expense YR5=________ Book Value Yr 5=____________
Explanation / Answer
$600000/5=$120000
Depreciation Expense YR1=$120000 Book Value Yr 1=$480000
Depreciation Expense YR2=$120000 Book Value Yr 2=$360000
Depreciation Expense YR3=$120000 Book Value Yr 3=$240000
Depreciation Expense YR4=$120000 Book Value Yr 4=$120000
Depreciation Expense YR5=$120000 Book Value Yr 5=$0