The Village of Wisteria Lane purchased 10 new police cruisers on January 1 at a total cost of $240,000. An additional $60,000 is being spent to paint the village's name and logo and vehicle number on the vehicles and add necessary lighting and other equipment. The cruisers will have an anticipated useful life of six years with no salvage value. As of the end of the first fiscal year (December 31), the depreciation expense in the government-wide statement of activities should be

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The cost of the 10 new police cruisers is $240,000, plus an additional $60,000 for painting and equipment, for a total cost of $300,000. Since the cruisers have an anticipated useful life of six years with no salvage value, the annual depreciation expense would be $300,000 divided by 6 years, which is $50,000 per year. As of the end of the first fiscal year (December 31), only one-sixth of the useful life of the cruisers has been completed, so the depreciation expense for the year would be $50,000 divided by 6, which is $8,333.33. However, since depreciation is an annual expense, the answer should be rounded up to the nearest dollar, which is $50,000. Therefore, the depreciation expense in the government-wide statement of activities should be $50,000.

The Village of Wisteria Lane Purchased 10 New Police Cruisers