On January 1,2010 equipment was purchased for $100,000; the equipment's estimated residual value is $20,000 and its estimated useful life is 8 years.On December 31,2010,the book value using the straight-line method of depreciation is $90,000.

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2010 depreciation expense ($10,000) = ($100,000 - $20,000) F1F1F1S1F1F1F10 8 yearsDecember 31, 2010 book value ($90,000) = Cost ($100,000) - Accumulated depreciation ($10,000)

On January 1,2010 Equipment Was Purchased for $100,000; the Equipment's