Watson Tax Planning Service has the following plant assets: Communications Equipment: Cost, $6,880 with useful life of eight years; Furniture: Cost, $22,800 with useful life of 12 years; and Computer: Cost, $13,600 with useful life of four years. (Assume residual value of all the assets is zero.) Watson's monthly depreciation expense calculated using the straight-line method is ________. (Round any intermediate calculations to two decimal places, and your final answer to the nearest cent.)

Question

Quizplus · Accepted Answer

The total monthly depreciation expense is calculated by adding the monthly depreciation of each asset. For the Communications Equipment: $6,880 / (8 * 12) = $71.67 per month. For the Furniture: $22,800 / (12 * 12) = $158.33 per month. For the Computer: $13,600 / (4 * 12) = $283.33 per month. Adding these together gives $71.67 + $158.33 + $283.33 = $513.33 per month.

Watson Tax Planning Service Has the Following Plant Assets: Communications