On June 30,2016,Colora Printers purchased a printer for $59,000.It expects the printer to last for four years and have a residual value of $8,000.Compute the depreciation expense on the printer for the year ended December 31,2016,using the straight-line method.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

B)Depreciation per year = (Cost - Residual value)/ Useful life
Depreciation for the first year = (($59,000 - $8,000)/ 4)× (6 /12)= $6,375

On June 30,2016,Colora Printers Purchased a Printer for $59,000