Slide 9-19 Straight-Line method Example On January 1, 1998, Bass Co buys a new boat. Bass Co pays $24,000 for the boat the boat has an estimated residual value of $ 3, 000 and an estimated useful life of 5 years Compute depreciation for 1998 using the straight-line method Cost Residual Value 24,000 $ 3,000 Years of useful life 5 s 4, 200 per year Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999?The McGraw-Hill Companies, Inc., 1999 Slide 9-19 Irwin/McGraw-Hill Straight-Line Method Example Cost ? Residual Value $ 24,000 ? $ 3,000 = $ 4,200 per year Years of Useful Life = 5 On January 1, 1998, Bass Co. buys a new boat. Bass Co. pays $24,000 for the boat. The boat has an estimated residual value of $3,000 and an estimated useful life of 5 years. Compute depreciation for 1998 using the straight-line method