Equipment acquired on January 1,2014,is sold on June 30,2018,for $11,200.The equipment cost $46,800,had an estimated residual value of $6,800,and an estimated useful life of 5 years.The company prepared financial statements on December 31,and the equipment has been depreciated using the straight-line method.On June 30,2018,the company should record Depreciation Expense of:

Question

Quizplus · Accepted Answer

Depreciation expense for the first 5 years = ($46,800 - $6,800) / 5 = $8,000 per year. Depreciation expense for the first 6 months of the 6th year = $8,000 / 2 = $4,000.

Equipment Acquired on January 1,2014,is Sold on June 30,2018,for $11,200