Glencoe Accounting

Chapter 23: Plant Assets and Depreciation

Homework Practice

Plant Asset Depreciation and Book Value Calculations

Smitherson Corporation purchased equipment costing $56,000 on January 1, 2010. The equipment is estimated to have a 5-year life and a salvage value of $6,000.

Instructions

Complete the chart below by computing depreciation expense, accumulated depreciation, and book value for each year using the straight-line depreciation method.

Round all answers to the nearest dollar.