On January 1,2017,Anodel,Inc.acquired a machine for $1,080,000.The estimated useful life of the asset is five years.Residual value at the end of five years is estimated to be $56,000.Calculate the depreciation expense per year using the straight-line method.

Question

Quizplus · Accepted Answer

B)Straight-line depreciation = (Cost - Residual value)/ Useful life
Depreciation as per the straight-line method = ($1,080,000 - $56,000)/ 5 = $204,800