Hank's Tax Planning Service bought computer equipment for $19 200 on 1 January 2013. It has an estimated useful life of 4 years. Hank records depreciation monthly. As of 30 September 2013, Hank has recorded total depreciation expense for this equipment of:
A)$2 400.
B)$14 400.
C)$3 600.
D)$400.

Question

Quizplus · Accepted Answer

The annual depreciation is $19,200 / 4 = $4,800. Monthly depreciation is $4,800 / 12 = $400. From January to September is 9 months, so total depreciation is 9 * $400 = $3,600.

Hank's Tax Planning Service Bought Computer Equipment for $19 200