Respuesta :
To determine the estimated residual value of the oil tanker depot at the end of 10 years, we need to consider its cost, the duration of operation, and the estimated residual value.
The cost of the oil tanker depot is given as $516,000, and it is expected to be operated for 10 years. After 10 years, it is legally required to be dismantled.
The estimated residual value is typically calculated by subtracting the accumulated depreciation from the original cost. Since the asset is to be operated for 10 years, we can use the straight-line depreciation method, assuming no salvage value at the end of the asset's useful life.
Straight-line Depreciation per year = (Cost - Salvage Value) / Useful Life
Given:
Cost = $516,000
Useful Life = 10 years
Salvage Value = 0 (no salvage value)
Straight-line Depreciation per year = ($516,000 - $0) / 10 = $51,600 per year
After 10 years, the accumulated depreciation would be:
Accumulated Depreciation = Straight-line Depreciation per year * Number of years
Accumulated Depreciation = $51,600 * 10 = $516,000
The estimated residual value at the end of 10 years is then:
Residual Value = Cost - Accumulated Depreciation
Residual Value = $516,000 - $516,000 = $0
Since there is no residual value estimated based on the given information, none of the provided options (a) $16,000, (b) $26,000, (c) $36,000, or (d) $46,000 is correct.
The cost of the oil tanker depot is given as $516,000, and it is expected to be operated for 10 years. After 10 years, it is legally required to be dismantled.
The estimated residual value is typically calculated by subtracting the accumulated depreciation from the original cost. Since the asset is to be operated for 10 years, we can use the straight-line depreciation method, assuming no salvage value at the end of the asset's useful life.
Straight-line Depreciation per year = (Cost - Salvage Value) / Useful Life
Given:
Cost = $516,000
Useful Life = 10 years
Salvage Value = 0 (no salvage value)
Straight-line Depreciation per year = ($516,000 - $0) / 10 = $51,600 per year
After 10 years, the accumulated depreciation would be:
Accumulated Depreciation = Straight-line Depreciation per year * Number of years
Accumulated Depreciation = $51,600 * 10 = $516,000
The estimated residual value at the end of 10 years is then:
Residual Value = Cost - Accumulated Depreciation
Residual Value = $516,000 - $516,000 = $0
Since there is no residual value estimated based on the given information, none of the provided options (a) $16,000, (b) $26,000, (c) $36,000, or (d) $46,000 is correct.
