Equipment with a cost of $150,000 has an accumulated depreciation of $50,000, and an estimated remaining life of 8 years. What is the annual straight-line depreciation expense for the equipment?

Question

Quizplus · Accepted Answer

To calculate the annual straight-line depreciation expense for the equipment, we need to subtract the accumulated depreciation from the original cost of the equipment and then divide by the estimated remaining life (in years). Here's the calculation:
($150,000 - $50,000) / 8 = $12,500

Equipment with a Cost of $150,000 Has an Accumulated Depreciation