Ms. Naira. How much did I Pay? Use Straight line method Assume I purchased an IPod that I plan to use for the next 4 years. If I estimate a salvage value.

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Presentation transcript:

Ms. Naira

How much did I Pay? Use Straight line method Assume I purchased an IPod that I plan to use for the next 4 years. If I estimate a salvage value of $25 and an annual depreciation of $30, how much did I pay ?

How Much Did I Pay? Use Straight line method Assume I purchased a used car that I plan to use for the next 6 years. If I estimate a salvage value of $500 and an annual depreciation of $2,000 how much did I pay ?

Book value What’s the book value at the end of year 5? Original Cost $15,000 Salvage Value $ 500 Useful Life 8 years Straight= ______Double=

Book Value What’s the book value at the end of year 3? George purchased a new Mac Computer System. He paid $6, 500. He plans to use it for the next 4 years and expects to sell it for $500 once he no longer needs it (at the end of 4 years) Straight= _____Double=_____

Find the Original Cost Use Straight line method Assume you purchased a motorcycle for pizza delivery services, you estimate to use the motorcycle for 5 years. If you calculate a salvage value of $1500 and an annual depreciation of $2000, how much did you pay for the Motorcycle?

Calculate Depreciation Calculate the book value in 3 years, for a car that originally cost $35,000, estimated salvage value of $18,000 and estimated to be used for the next 6 years. Straight ____________Double _____