A method that excludes residual value from the base for the depreciation calculation is a. Straight- 1 answer below »
A method that excludes residual value from the base for the depreciation calculation is
a. Straight-line
b. Sum-of-the-years’-digits
c. Double-declining-balance
d. Productive-output
Vorst Corporation’s schedule of depreciable assets at December 31, 2007 was as follows:
Asset
Cost
Accumulated Depreciation
Acquisition Date
Residual Value
A
$100,000
$64,000
2006
$20,000
B
55,000
36,000
2005
10,000
C
70,000
33,600
2005
14,000
$225,000
$133,600
$44,000
Vorst takes a full year’s depreciation expense in the year of an asset’s acquisition, and no depreciation expense in the year of an asset’s disposition. The estimated useful life of each depreciable asset is five years.
