A landscaping company purchases a used snowplow at a cost of $4,000. The plow has a life of 6 years

Algebra
Tutor: None Selected Time limit: 1 Day

A landscaping company purchases a used snowplow at a cost of $4,000. The plow has a life of 6 years and no salvage value. Use the sum-of-the-years’-digits method of depreciation to determine the sixth year’s depreciation.
May 20th, 2015

the snowplow depreciable amount will be $4,000 because there is no salvage value.

Next the digits in the years of the asset's useful life are summed 1+2+3+4+5+6=21

in the 1st year, (6/21)*4000= 1142.86 will be debited to Depreciation Expense and $1142.86 will be credited to Accumulated Depreciation

in second year=(5/21)*4000=952.3

third year=(4/21)*4000=761.9

fourth=(3/21)*4000=571.43

fifth=(2/21)*4000=380.95

sixth=(1/21)*4000=$190.48 which is the sixth year's depreciation

May 20th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
May 20th, 2015
...
May 20th, 2015
Mar 28th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer