On July 31,2016,Colora Printers purchased a printer for $57,000.It expects the printer to last for four years and have a residual value of $11,000.Compute the depreciation expense on the printer for the year ended December 31,2016,using the straight-line method.

Question

Quizplus · Accepted Answer

Depreciation per year = (Cost - Residual value)/ Useful life
Depreciation for the first year = (($57,000 - $11,000)/ 4)× (5 /12)= $4,792

On July 31,2016,Colora Printers Purchased a Printer for $57,000