Spiro Corp. uses the sum-of-the-years' digits method to depreciate equipment purchased in January year 1 for $20,000. The estimated salvage value of the equipment is $2,000 and the estimated useful life is four years. What should Spiro report as the asset's carrying amount as of December 31, year 3

Carrying value on Dec 31, Year 3= $3,800

Explanation:

Depreciable amount = Cost -  Salvage Value

Depreciable amount  = 20,000-2,000

Depreciable amount = $18,000

Sum of years’ digits = 1+2+3+4 = 10

Depreciation for Year 1 = 18,000*4/10 = 7,200

Depreciation for Year 2 = 18,000*3/10 = $5,400

Depreciation for Year 3 = 18,000*2/10 = $3,600

Carrying value on Dec 31, Year 3 = Purchase cost - Depreciation

Carrying value on Dec 31, Year 3 = $20,000 - $7,200 - $5,400 - $3,600

Carrying value on Dec 31, Year 3= $3,800

answer; common market;

d) social security number

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