Straight line depreciation questions?
1. Machine costs $20,000
Residual value is $2,000
Estimated life is 5 years
Calculate book value at the end of year 1, assuming twice the straight-line rate
2. Car costs $25,000
Residual value is $5,000
Estimated life is 5 years
After 3 years, car was sold for $11,000
Calculate the difference between book value and selling price, using the straight-line method of depreciation.