Depreciation for 2013, using the straight-line method is:
A)$13,500.
B)$15,000.
C)$4,500.
D)$5,000.

Question

Quizplus · Accepted Answer

To calculate depreciation using the straight-line method, we need to divide the cost of the asset by the number of years it will be used, and then multiply by 1/12 (since we are calculating monthly depreciation).

The cost of the asset is given as $54,000, and the asset has a useful life of 12 years. Therefore, annual depreciation would be $54,000 / 12 = $4,500. Monthly depreciation would be $4,500 / 12 = $375.

Since we are only concerned with depreciation for 2013, we need to multiply the monthly depreciation by the number of months in 2013 (which is 12, of course). Therefore, the total depreciation for 2013 is:

$375 x 12 = $4,500

Depreciation for 2013, Using the Straight-Line Method Is