A construction company purchased a new bulldozer for $90,000 on January 1,2011.The company estimates that the bulldozer will have a useful life of nine years and then be worthless.Using the straight-line depreciation method,yearly depreciation expense will be:

Question

Quizplus · Accepted Answer

The straight-line depreciation method evenly spreads the cost of the asset over its useful life. To calculate the yearly depreciation expense, we divide the cost of the asset ($90,000) by the estimated useful life (9 years). 
$90,000 / 9 years = $10,000 per year. 
Therefore, the answer is B, $10,000 per year.

A Construction Company Purchased a New Bulldozer for $90,000 on January