On January 1,2016,a firm purchased machinery for $17,000.Depreciation expense for the year ending December 31,2016,given the straight-line method,a 5-year useful life,and a salvage value of $3,000,is

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Quizplus · Accepted Answer

First, we need to calculate the depreciation expense per year using the straight-line method:
Depreciation per year = (Cost - Salvage value) / Useful life
Depreciation per year = ($17,000 - $3,000) / 5 years = $2,800
Therefore, the depreciation expense for the year ending December 31, 2016 is $2,800.

On January 1,2016,a Firm Purchased Machinery for $17,000