New equipment was purchased on January 1 for $142,000.It has a salvage value of $28,000 and a useful life of 8 years.To the nearest dollar,how much will the depreciation expense for the equipment be for the first year using the straight-line method?
A)$1,188
B)$17,750
C)$1,479
D)$14,250

Question

Quizplus · Accepted Answer

To calculate the annual depreciation using the straight-line method, we need to use the following formula:

Depreciation expense per year = (Cost of asset – Salvage value) / Useful life

Plugging in the given values, we get:

Depreciation expense = (142,000 – 28,000) / 8 = $14,250

Therefore, the answer is D, $14,250.

New Equipment Was Purchased on January 1 for $142,000