Using a straight-line depreciation schedule, at what amount is the company depreciating its equipment if the cost of the equipment is $45,000 and it has a residual value of $5,000 with a useful life of four years?

Name: Using a straight-line depreciation schedule, at what amount is the company depreciating its equipment if the cost of the equipment is $45,000 and it has a residual value of $5,000 with a useful life of four years?
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Quizplus · Accepted Answer

$45,000 - $5,000 = $40,000; $40,000 / 4 = $10,000 per year.

Using a Straight-Line Depreciation Schedule, at What Amount Is the Company