On January 1,2018,Jordan Company acquired a machine for $1,090,000.The estimated useful life of the asset is five years.Residual value at the end of five years is estimated to be $60,000.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 = ($1,090,000 - $60,000) / 5 = $206,000

On January 1,2018,Jordan Company Acquired a Machine for $1,090,000