On January 1,2017,Anodel,Inc.acquired a machine for $1,010,000.The estimated useful life of the asset is five years.Residual value at the end of five years is estimated to be $62,000.Calculate the depreciation expense per year using the straight-line method.

Question

Quizplus · Accepted Answer

Straight-line depreciation = (Cost - Residual value)/ Useful life
Depreciation as per the straight-line method = ($1,010,000 - $62,000)/ 5 = $189,600