On June 30,2018,Clooney Printers purchased a printer for $60,000.It expects the printer to last for four years and have a residual value of $9000.Compute the depreciation expense on the printer for the year ended December 31,2018,using the straight-line method.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

Depreciation per year = (Cost - Residual value) / Useful life
Depreciation for the first year = (($60,000 - $9000) / 4) × (6 /12) = $6375

On June 30,2018,Clooney Printers Purchased a Printer for $60,000