Doorglam paid $105,000 for office furniture.The furniture is depreciated using the straight-line method and has an estimated service life of 7 years.After three years of use,the accumulated depreciation of the furniture will be:

Question

Quizplus · Accepted Answer

The straight-line depreciation method divides the cost of the asset by its useful life. $105,000 / 7 years = $15,000 per year. After three years, the accumulated depreciation is $15,000 * 3 = $45,000.

Doorglam Paid $105,000 for Office Furniture