Equipment with a cost of $160 000 has an estimated residual value of $10 000 and an estimated useful life of four years. Using the straight-line method, what is the amount of depreciation for the first full year?
A) $37 500
B) $42 500
C) $41 250
D) $40 000

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost - Residual value) / Useful life= (160,000 - 10,000) / 4= 150,000 / 4= $37,500

Equipment with a Cost of $160 000 Has an Estimated