Depreciation in Financial Statements
Dynasty Co

Essay

Depreciation in financial statements
Dynasty Co. uses straight-line depreciation in its financial statements, with depreciation for a partial year rounded to the nearest full month.
On 28 September 2006 Dynasty purchased equipment at a cost of $140,000. For financial reporting purposes, the useful life of this equipment was estimated at 5 years, with a $30,000 salvage value.
Compute the depreciation expense relating to this equipment that Dynasty will recognize in its financial statements in the following years. If no depreciation will be recognized in a particular year, write zero. $$\begin{array} { | l | l | } \hline \text { Year } & \text { Amount } \\\hline & \\\hline 2006 & \$ \\\hline 2007 & \$ \\\hline 2008 & \$ \\\hline 2009 & \$ \\\hline 2010 & \$ \\\hline 2011 & \$ \\\hline\end{array}$$