On January 1,2011,Swinger,Inc.purchases a batting machine for $240,000 that has an estimated useful life of 5 years and an expected residual value of $20,000.Calculate the annual amount of depreciation expense.

Question

Quizplus · Accepted Answer

The annual amount of depreciation expense using the straight-line method can be calculated as follows:

Depreciation Expense = (Cost - Residual Value) / Useful Life

= ($240,000 - $20,000) / 5

= $44,000

Therefore, the correct answer is B) $44,000.