Tyler Company purchased equipment that cost $260,000 cash on January 1,Year 1.The equipment had an expected useful life of five years and an estimated salvage value of $10,000.Tyler depreciates its assets under the straight-line method.What is the amount of depreciation expense appearing on the Year 1 income statement?

Question

Quizplus · Accepted Answer

Annual depreciation expense = (Cost of $260,000 - Salvage value of $10,000)÷ 5 years = $50,000

Tyler Company Purchased Equipment That Cost $260,000 Cash on January