On November 1,2011,Frigate Shipping Company bought equipment that cost $400,000,with an estimated useful life of 8 years and an estimated salvage value of $28,000.The company uses the straight-line method of depreciation and has a fiscal year ending on October 31.For the year ended October 31,2012,Frigate Company will report depreciation expense of ________.

Question

Quizplus · Accepted Answer

The depreciation expense is calculated using the straight-line method: (Cost - Salvage Value) / Useful Life = ($400,000 - $28,000) / 8 = $372,000 / 8 = $46,500 per year.

On November 1,2011,Frigate Shipping Company Bought Equipment That Cost $400,000,with