DEPRECIATION - Business Property and Depreciation Page 1 of...

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Business Property and Depreciation Page 1 of 5 Additional Problems 1. Calculate the straightline depreciation per year on a project with a depreciable base of $100,000 if the expected life is 3 years. Solution: Divide $100,000 by 3 to get $33,333.33 per year Year Depreciation Expense 1 $33,333.33 2 $33,333.33 3 $33.333.33 2. Calculate the straightline depreciation per year on a project with a depreciable base of $100,000 if the expected life is 5 years. Solution: Divide $100,000 by 5 to get $20,000.00 per year Year Depreciation Expense 1 $20,000.00 2 $20,000.00 3 $20,000.00 4 $20,000.00 5 $20,000.00 3. Calculate the straightline depreciation per year on a project with a depreciable base of $100,000 if the expected life is 7 years. Solution: Divide $100,000 by 7 to get $14,285.71 per year Year Depreciation Expense 1 $14,285.71 2 $14,285.71 3 $14,285.71 4 $14,285.71 5 $14,285.71 6 $14,285.71 7 $14,285.71
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Business Property and Depreciation Page 2 of 5 4. Calculate the straightline depreciation per year on a project with a depreciable base of $100,000 if the expected life is 3 years. Use the half-year convention. Solution: Divide $100,000 by 3 to get $33,333.33 per year. Adjust the first for half of that amount. Year Depreciation Expense 1 $16.666.67 2 $33,333.33 3 $33.333.33 4 $16,666.67 5. Calculate the straightline depreciation per year on a project with a depreciable base of $100,000 if the expected life is 5 years. Use the half-year convention.
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