Equipment reported in December 31,2013, balance sheet was purchased in January 2013. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, 36,000; February, $96,000; and March 28,800. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s deprecation is taken for the month in whish equipment is purchased.
we have been provided with the following information
machinary purchased
January, 36,000
February, $96,000
and March 28,800.
equipment will be depreciated under the straight-line method over eight years with no salvage value.
straight-line depreciation wiil be
36,000 /8 year = 4500 year.
4500/12 momths =$375 per month
98,000 / 8 year = 12250 year.
12250/12 momths = $1,021 per month
28,500 / 8 year =3562.5 year
3562.5/12 months= $297 per month
Monthly depriciation expenses will be
| Month | Depriciation | Calculation |
| Jan | 375 | 375 |
| Feb | 1396 | 375+1021 |
| March | 1693 | 375+1021+297 |
