A company purchased factory equipment on June 1, 2011, for ¥800,000.It is estimated that the equipment will have a ¥50,000 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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Depreciation expense = (Cost - Residual value) / Useful life= (¥800,000 - ¥50,000) / 10= ¥75,000 / 10= ¥7,500 per yearDepreciation expense for 7 months (June 1 to December 31)= ¥7,500 x 7/12= ¥43,750

A Company Purchased Factory Equipment on June 1, 2011, for ¥800,000.It