On January 1, 2019, a firm purchased machinery for $19,000. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 8-year useful life, and a salvage value of $2,000, is

Question

Quizplus · Accepted Answer

Under the straight-line method,
Depreciation per Year = (Cost - Salvage Value) / Useful Life
Depreciation per Year = ($19,000 - $2,000) / 8
Depreciation per Year = $2,125
Therefore, the Depreciation expense for the year ending December 31, 2019, is $2,125.

On January 1, 2019, a Firm Purchased Machinery for $19,000