Sargent Corporation bought equipment on January 1, 2015. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years. The depreciation expense using the straight-line method of depreciation is

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates depreciation by subtracting the salvage value from the cost and then dividing by the useful life. ($360,000 - $60,000) / 6 = $50,000.

Sargent Corporation Bought Equipment on January 1, 2015