Cost of Equipment 40,000 1-Jan-15 Standard Method

Transportation - Dep = (Cost-SV) / Life

Instalation -
Estimated Useful Life 6 Year Depreciation
Salvage 4,000 2015 6,000
2016 6,000
Capitalized Amount 40,000 2017 6,000
2018 6,000
2019 6,000
2020 6,000
Assume that:
After ONE year (i.e. in 2016), the estimate of salvage vaue was revised to: 6,000
After TWO years (i.e. in 2017), remaining life of the equipment was increased by: 2

St. Line Depreciation Beg. Book Value - Salvage Beg BV

Remaining Life 2015 40,000
2016 34,000
2017 28,400
2018 24,667
2019 20,933
2020 17,200
2021 13,467
2022 9,733
 St. Line Dep = (Beg. Book Value - Salvage)
ost-SV) / Life Remaining Life

Acc. Dep Year Beg BV Salvage Rem. Life Dep Acc. Dep
6,000 2015 40,000 4,000 6 6,000 6,000
12,000 2016 34,000 4,000 5 6,000 6,000
18,000 2017 28,000 4,000 3 8,000 8,000
24,000 2018 20,000 2,000 2 9,000 9,000
30,000 2019 11,000 2,000 1 9,000 9,000
36,000 2020 2,000 2,000 0

years

Salvage Rem. Life Dep Acc. Dep End BV

4,000 6 6,000 6,000 34,000
6,000 5 5,600 11,600 28,400
6,000 6 3,733 15,333 24,667
6,000 5 3,733 19,067 20,933
6,000 4 3,733 22,800 17,200
6,000 3 3,733 26,533 13,467
6,000 2 3,733 30,267 9,733
6,000 1 3,733 34,000 6,000
End BV
34,000
28,000
20,000
11,000
2,000