Depreciation for 2009, using the straight-line method is:
A)$13,500.
B)$15,000.
C)$ 4,500.
D)$ 5,000.($200,000 20,000) 10 3/12 = $4,500

Question

Quizplus · Accepted Answer

The straight-line method of depreciation is calculated by dividing the cost of the asset by its estimated useful life. In this case, the cost of the asset is $200,000 and the estimated useful life is 20 years. Therefore, the annual depreciation would be $10,000 ($200,000/20). Since the asset was purchased on October 1st, it was used for 3 months in 2009. Therefore, the depreciation for 2009 would be $4,500 ($10,000*3/12). The correct answer is option C.

Depreciation for 2009, Using the Straight-Line Method Is