A construction company purchased a new bulldozer for $90,000 on January 1, 2012. The company estimates that the bulldozer will have a useful life of nine years and then be worthless. Using the straight-line depreciation method, yearly depreciation expense will be:

Question

Quizplus · Accepted Answer

The straight-line depreciation method divides the cost of the asset by its useful life. $90,000 divided by 9 years equals $10,000 per year.

A Construction Company Purchased a New Bulldozer for $90,000 on January