DEPRECIATION

# 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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