What would the depreciation expense be in year 3 for a computer system using the straight-line method when cost is $5,000,residual value is $1,000,and the expected life is 4 years?

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates annual depreciation by subtracting the residual value from the cost and dividing by the useful life. Here, ($5,000 - $1,000) / 4 = $1,000 per year. Thus, the depreciation expense in year 3 is $1,000.

What Would the Depreciation Expense Be in Year 3 for a Computer