Apple Co. bought a car with an estimated life of five years for $12,000. The residual value of the car is $2,000. What will be the amount of depreciation expense each year using the straight-line method? If the car was bought on April 3, what would be the depreciation for the first year?

Question

Quizplus · Accepted Answer

($12,000 - $2,000)/ 5 = $2,000 depr exp per yr; 9/12 × $2,000 = $1,500.

Apple Co Bought a Car with an Estimated Life of Five