Rajiv Motors bought a large hydraulic lift on January 1, 2010 for $80,500 with an estimated useful life of 5 years and a salvage/residual value of $2500. On December 31, 2012, they determine that the equipment can be used for an additional 4 years with a revised salvage/residual value of $1200. Rajiv uses the straight line method of depreciation.
a) What is the Depreciation Expense in 2010 & 2011?
$ in 2010
$ in 2011
b) What is the Book Value at the end of 2012?
$
c) What is the depreciation expense for 2014?
$
d) What is the Book Value at the end of 2014?
$