On Jan. 2, 2010, Wright Construction Co. purchased equipment for $50,000. Wright expects to use the equipment for three years, at which time it will have an estimated salvage value of $27,500. What is the depreciation expense for 2010?
A) $ 7,500
B) $ 9,167
C) $16,667
D) $27,500
E) $50,000

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost - Salvage value) / Useful life= (50,000 - 27,500) / 3= $7,500

On Jan 2, 2010, Wright Construction Co