An asset has a life of 3 years. It costs $90 000 and has an expected residual value of $15 000. Using straight- line depreciation, what is the depreciation expense each of the three years?

Name: An asset has a life of 3 years. It costs $90 000 and has an expected residual value of $15 000. Using straight- line depreciation, what is the depreciation expense each of the three years?
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Question

Quizplus · Accepted Answer

Depreciation expense = (Cost - Residual value) / Useful life= ($90,000 - $15,000) / 3= $25,000

An Asset Has a Life of 3 Years