A company purchased factory equipment on April 1, 2011 for €80,000.It is estimated that the equipment will have a €10,000 residual value at the end of its 10-year useful life.Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2011 is

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Quizplus · Accepted Answer

The annual depreciation expense is (€80,000 - €10,000) / 10 = €7,000. For 9 months (April to December), the depreciation is (€7,000 / 12) * 9 = €5,250.

A Company Purchased Factory Equipment on April 1, 2011 for €80,000.It