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Straight Line Depreciation Home Health Care, Inc. (HHCI) purchased a new sonargram imaging unit for...

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Accounting

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Straight Line Depreciation Home Health Care, Inc. (HHCI) purchased a new sonargram imaging unit for $300,000 and had it mounted on a truck body for an additional $100,000, including the truck chassis. The unit-truck system will be depreciated as one asset. The functional life is 8 years, and salvage is estimated at 10% of the purchase price of the imaging unit. (a) Use classical straight line depreciation and hand calculations to determine the salvage value, annual depreciation, and book value after 4 years. (b) Develop the cell reference worksheet in Excel to obtain the answers in part (a) for the original data. (c) Use your Excel worksheet to determine the answers, if the sonargram unit cost goes up to $350,000 and the expected life is decreased to 5 years. Air handling equipment that costs $12,000 has a life of 8 years with a $2000 salvage value. (a) Calculate the straight line depreciation amount for each year. (b) Determine the book value after3 years. (c) What is the rate of depreciation

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