An asset was purchased for $200,000.It had an estimated residual value of $40,000 and an estimated useful life of ten years.After four years of use,the estimated residual value is revised to $28,000.Assuming straight-line depreciation,depreciation expense in year 5 of use would be
A) $18,000.
B) $17,144.
C) $28,668.
D) $15,333.

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost - Residual value) / Useful life= (200,000 - 28,000) / 10= 172,000 / 10= $17,200

An Asset Was Purchased for $200,000