Mitchell Corporation bought equipment on January 1, 2017. The equipment cost $300,000 and had an expected salvage value of $50,000. The life of the equipment was estimated to be 6 years. The depreciation expense using the straight-line method of depreciation is
A)$58,333.
B)$60,000.
C)$41,667.
D)none of these answer choices are correct.

Question

Quizplus · Accepted Answer

The formula for straight-line depreciation is: (cost - salvage value) / useful life.
In this case, it would be: ($300,000 - $50,000) / 6 = $41,667 per year.

Mitchell Corporation Bought Equipment on January 1, 2017