Oakland Tax Planning Service bought computer equipment for $24,000 on January 1,2018.It has an estimated useful life of four years and zero residual value.Oakland uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of each month.Calculate the amount of Depreciation Expense for the period,January 1,2018 through September 30,2018,for this equipment.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)
A) $6,000
B) $4,500
C) $6,500
D) $5,000

Question

Quizplus · Accepted Answer

B) Straight-line depreciation = (Cost - Residual value) / Useful life
Straight-line depreciation = ($24,000 - 0) / 4 years = $6,000 per year 11ea8873_d44f_891f_bb89_cf0d6bbf2778_TB5026_00 Depreciation Expense from January to 11ea8873_d44f_af30_bb89_eb412fb05706_TB5026_00

Oakland Tax Planning Service Bought Computer Equipment for $24,000 on January