Abbott Company opened for business on January 1, Year 1. Also, on January 1, Year a, the company purchased office equipment that cost $20,700 cash. The equipment had a five-year useful life and a $6,600 expected salvage value.
Required:
Compute the depreciation expense using straight-line method for each of the five years.

Question

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The Answer of Abbott Company opened for business on January 1, Year 1. Also, on January 1, Year a, the company purchased office equipment that cost $20,700 cash. The equipment had a five-year useful life and a $6,600 expected salvage value.
Required:
Compute the depreciation expense using straight-line method for each of the five years.

Abbott Company Opened for Business on January 1, Year 1