An asset cost $33,000.It has an expected useful life of 5 years and an expected salvage value of $3,000.Depreciation expense for the first year of the asset's life using the straight-line method is
A) $6,000.
B) $6,600.
C) $10,000.
D) $13,200.

Question

Quizplus · Accepted Answer

To calculate depreciation expense using the straight-line method, you subtract the expected salvage value from the cost of the asset and divide it by the useful life of the asset.

Depreciation per year = ($33,000 - $3,000) / 5 = $6,000

Therefore, the depreciation expense for the first year of the asset's life using the straight-line method is $6,000.

An Asset Cost $33,000