Lomax Enterprises purchased a depreciable asset for $22,000 on March 1,Year 1.The asset will be depreciated using the straight-line method over its four-year useful life.Assuming the asset's salvage value is $2,000,Lomax Enterprises should recognize depreciation expense in Year 2 in the amount of:

Question

Quizplus · Accepted Answer

Depreciation Expense = (Cost - Salvage Value)/Estimated Useful Life
Depreciation Expense = ($22,000 - $2,000)/4; Depreciation Expense = $5,000

Lomax Enterprises Purchased a Depreciable Asset for $22,000 on March