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# Wichita Clinic

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Wichita Clinic purchased a new surgical laser for \$84,000. The estimated salvage value is \$4,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,100 hours in year 2; 2,400 hours in year 3; 1,900 hours in year 4; 2,000 hours in year 5.

Instructions
(a) Compute the annual depreciation for each of the five years under each of the following methods:
(1) straight-line.
(2) units-of-activity.

#### Solution Preview

PART VI - DEPRECIATION

Wichita Clinic purchased a new surgical laser for \$84,000. The estimated salvage value is \$4,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,100 hours in year 2; 2,400 hours in year 3; 1,900 ...

#### Solution Summary

This solution is comprised of a detailed explanation to compute the annual depreciation for each of the five years under each of the following methods:
(1) straight-line.
(2) units-of-activity.

\$2.19