Lacy purchased equipment for $76,000 on January 1. Its residual value is $4,000 with a useful life of 9 years. The amount of depreciation expense in the first year under the straight-line method is: (Round your answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates annual depreciation by subtracting the residual value from the cost and dividing by the useful life. ($76,000 - $4,000) / 9 = $8,000.

Lacy Purchased Equipment for $76,000 on January 1