Alby Ltd purchased a machine for $32 000 on 1 January 2018. The machine was expected to have a useful life of four years. The financial year ends on 31 December. The straight-line method of depreciation is employed. What was the depreciation expense for year ended 31 December 2019?

Question

Quizplus · Accepted Answer

The depreciation expense using the straight-line method is calculated by dividing the cost of the asset by its useful life. Therefore, $32,000 / 4 years = $8,000 per year.

Alby Ltd Purchased a Machine for $32 000 on 1