Sargent Corporation bought equipment on January 1 2017. The equipment cost $360000 and had an expected salvage value of $60000. The life of the equipment was estimated to be 6 years. The depreciation expense using the straight-line method of depreciation is

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Quizplus · Accepted Answer

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

Sargent Corporation Bought Equipment on January 1 2017