Sargent Corporation bought equipment on January 1, 2010. The equipment cost $90,000 and had an expected salvage value of $15,000. 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. ($90,000 - $15,000) / 6 = $12,500.

Sargent Corporation Bought Equipment on January 1, 2010