A is corrent. The SYD denominator for this equipment is 55 [10(10 + 1)/2 = 55]. In year 3 the SYD fraction is 8/55. Thus, the year 3 SYD depreciation equation is 8/55 (cost - $5,000) = $24,000. Solve the equation as illustrated below to determine the acquisition cost.
B is incorrect. The SYD denominator for this equipment is 55 [10(10 + 1)/2 = 55]. In year 3 the SYD fraction is 8/55. Thus, the year 3 SYD depreciation equation is 8/55 (cost - $5,000) = $24,000. Solve the equation as illustrated below to determine the acquisition cost.
B is incorrect. The SYD denominator for this equipment is 55 [10(10 + 1)/2 = 55]. In year 3 the SYD fraction is 8/55. Thus, the year 3 SYD depreciation equation is 8/55 (cost - $5,000) = $24,000. Solve the equation as illustrated below to determine the acquisition cost.
B is incorrect. The SYD denominator for this equipment is 55 [10(10 + 1)/2 = 55]. In year 3 the SYD fraction is 8/55. Thus, the year 3 SYD depreciation equation is 8/55 (cost - $5,000) = $24,000. Solve the equation as illustrated below to determine the acquisition cost.
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