1. Tech Support Associates purchased a new computer network server and replaced all its terminals for $28,900. Its estimated life is 3 years, at which time it will have a scrap value of $2800. Use the straight-line method of depreciation to find the annual amount of depreciation. Find the book value at the end of 2 years.
$8700, $11,500
$9633, $9634
$8700, $17,400
$9633, $19,266
2. Find the annual amount of depreciation using the straight-line method. Round to the nearest dollar.
Cost: $360
Estimated life: 3 years
Estimated scrap value: $72
$72
$24
$120
$96
3. Find the depreciation per unit. Round to the nearest cent.
Cost: $6800
Salvage: $600
Est. Life: 35,000 units
$0.19
$0.18
$1.90
$1.80