What is the depreciation expense for the second year (straight-line method)using the following? $$\begin{array} { | l | c | }
\hline \text { Cost of equipment } & \$ 14,000 \
\hline \text { Residual value } & \$ 500 \
\hline \text { Life } & 4 \text { years } \
\hline
\end{array}$$

Question

What is the depreciation expense for the second year (straight-line method)using the following? $$\begin{array} { | l | c | } 
\hline \text { Cost of equipment } & \$ 14,000 \
\hline \text { Residual value } & \$ 500 \
\hline \text { Life } & 4 \text { years } \
\hline
\end{array}$$

Quizplus · Accepted Answer

To calculate the depreciation expense using straight-line method, we need to divide the cost of the asset ($54,000) by the useful life (16 years).
$54,000 / 16 = $3,375
Therefore, the depreciation expense for the second year using straight-line method would also be $3,375.

What Is the Depreciation Expense for the Second Year (Straight-Line