On October 1, 2019, Jefferson Consulting purchased new computers for $13,820. The computers are expected to last 3 years and will have an estimated residual value of $500. Jefferson Consulting has a December 31 year end. Required Prepare the table below showing the yearly depreciation, accumulated depreciation, and net book value of the equipment. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Year Original Cost of Equipment Depreciation Expense Accumulated Depreciation Net Book Value 2019 Answer Answer Answer Answer 2020 Answer Answer Answer Answer 2021 Answer Answer Answer Answer 2022 Answer Answer Answer Answer
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
On October 1, 2019, Jefferson Consulting purchased new computers for $13,820. The computers are expected to last 3 years and will have an estimated residual value of $500. Jefferson Consulting has a December 31 year end.
Required
Prepare the table below showing the yearly
Do not enter dollar signs or commas in the input boxes.
Round your answers to the nearest whole number.
| Year | Original Cost of Equipment | Depreciation Expense | Accumulated Depreciation | Net Book Value |
| 2019 | Answer | Answer | Answer | Answer |
| 2020 | Answer | Answer | Answer | Answer |
| 2021 | Answer | Answer | Answer | Answer |
| 2022 | Answer | Answer | Answer | Answer |
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