Ivanhoe Enterprises acquired a piece of equipment on January 3,2010.The total cost of the equipment was $35,000.Ivanhoe estimated that the equipment would be used for 8 years before being sold for an estimated $7,000.Assuming the use of straight-line depreciation,the total depreciation expense for the year ended December 31,2010 was:

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost of equipment - Estimated salvage value) / Useful life= (35,000 - 7,000) / 8= 28,000 / 8= $3,500

Ivanhoe Enterprises Acquired a Piece of Equipment on January 3,2010