Grand Slam Company purchased equipment for $9600 on January 1 2016. The company expects to use the equipment for 4 years. It has no salvage value. Monthly depreciation expense on the asset is

Question

Quizplus · Accepted Answer

The annual depreciation expense for the equipment can be calculated as $9600 / 4 years = $2400 per year. To get the monthly depreciation expense, we need to divide the annual expense by 12 months, which gives us $200 per month. Therefore, the monthly depreciation expense on the equipment is $200.

Grand Slam Company Purchased Equipment for $9600 on January 1