On January 2, 2019, a firm purchased equipment for $10,000. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 5-year useful life, and a salvage value of $1,200, is

Question

Quizplus · Accepted Answer

The annual depreciation using the straight-line method is calculated as follows: 
(cost - salvage value) / useful life 
= ($10,000 - $1,200) / 5 years 
= $1,760

Therefore, the depreciation expense for the year ending December 31, 2019, is $1,760.

On January 2, 2019, a Firm Purchased Equipment for $10,000