Bob's Bakery purchased an industrial oven for $22,000 with a residual value of $6,000 and a life expectancy of 8 years. Using straight-line depreciation, the amount of the depreciation adjustment for the first year would be

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The depreciable cost of the oven is $22,000 - $6,000 = $16,000. Using straight-line depreciation, the annual depreciation expense is calculated by dividing the depreciable cost by the useful life, which is $16,000 ÷ 8 = $2,000. Therefore, the depreciation adjustment for the first year would be $2,000.

Bob's Bakery Purchased an Industrial Oven for $22,000 with a Residual