SOLUTION: On Jan. 1 2008, purchased a copier for 12,000 dollars. The copier had an estimated life of four years and a salvage value of 2,000. How do I figure this out?

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Question 182162This question is from textbook Fundamentals of Financial Accounting
: On Jan. 1 2008, purchased a copier for 12,000 dollars. The copier had an estimated life of four years and a salvage value of 2,000. How do I figure this out? This question is from textbook Fundamentals of Financial Accounting

Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
You didn't ask a question. Figure what out?
Are you looking for the value of the copier for each year?
Hopefully something here will help.
Look at final (salvage) value versus initial value.
DELTA%2AV%5Bt%5D=12000-2000=10000
Typically you depreciate linearly so each of the four years the value will be reduced by,
+DELTA%2AV=10000%2F4=2500
On Jan. 1, 2008, the copier's value is $12000.
On Jan. 1, 2009, the copier's value is $9500.
On Jan. 1, 2010, the copier's value is $7000.
On Jan. 1, 2011, the copier's value is $4500.
On Jan. 1, 2012, the copier's value is $2000.