APPLY THE CONCEPTS: Calculate and determine the entry for straight-line depreciation
The equipment purchased by Galaxy Sun Industries (see the journal entry above) is expected to have a useful life of four years. At the end of its useful life, the residual value of the equipment is estimated to be $3,000. Galaxy Sun Industries's fiscal year ends each December 31.
In the table to the below, calculate the equipment's depreciation expense, the balance of accumulated depreciation, and the book value for each year the equipment is expected to be in service, using the straight-line method.
| Straight-Line Method |
| Year |
Depreciation Expense |
Accumulated Depreciation |
Book Value |
| 2011 |
$ |
$ |
$ |
| 2012 |
$ |
$ |
$ |
| 2013 |
$ |
$ |
$ |
| 2014 |
$ |
$ |
$ |
| 2015 |
$ |
$ |
$
|
APPLY THE CONCEPTS: Calculate and determine the entry for straight-line depreciation
The equipment purchased by Galaxy Sun Industries (see the journal entry above) is expected to have a useful life of four years. At the end of its useful life, the residual value of the equipment is estimated to be $3,000. Galaxy Sun Industries's fiscal year ends each December 31.
In the table to the below, calculate the equipment's depreciation expense, the balance of accumulated depreciation, and the book value for each year the equipment is expected to be in service, using the straight-line method.
| Straight-Line Method |
| Year |
Depreciation Expense |
Accumulated Depreciation |
Book Value |
| 2011 |
$ |
$ |
$ |
| 2012 |
$ |
$ |
$ |
| 2013 |
$ |
$ |
$ |
| 2014 |
$ |
$ |
$ |
| 2015 |
$ |
$ |
$ |