Using the straight-line method,depreciation expense for 2012 would be:

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To calculate depreciation expense using the straight-line method, you need to divide the depreciable base (cost of asset - salvage value) by the useful life of the asset. In this case, the depreciable base is $110,000 - $10,000 = $100,000, and the useful life is 10 years. Therefore, the annual depreciation expense is $100,000/10 = $10,000. However, since the asset was purchased on July 1, 2012, we need to prorate the first year's depreciation expense based on the number of months the asset was in use, which is 6/12 or 0.5. Therefore, the depreciation expense for 2012 is $10,000 x 0.5 = $5,000. The total depreciation expense for 2012 and 2013 would be $5,000 + $10,000 = $15,000.

Using the Straight-Line Method,depreciation Expense for 2012 Would Be