Sargent Corporation bought equipment on January 1, 2021.The equipment cost $360,000 and had an expected salvage value of $60,000.The life of the equipment was estimated to be six years.The depreciation expense using the straight-line method of depreciation is

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Quizplus · Accepted Answer

The straight-line depreciation expense is calculated as (Cost - Salvage Value) / Useful Life. Therefore, ($360,000 - $60,000) / 6 = $50,000 per year.

Sargent Corporation Bought Equipment on January 1, 2021