Business Property and Depreciation
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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