What would the lessee record as annual depreciation on the asset using the straight-line method, assuming no residual value?
A)$3,325.
B)$6,920.
C)$4,325.
D)$5,320.Deprecation = $34,600 / 8 years = $4,325

Question

Quizplus · Accepted Answer

Using the straight-line method, the annual depreciation is calculated by dividing the cost of the asset ($34,600) by the number of years of useful life (8) and assuming no residual value. Therefore, the annual depreciation would be $4,325.

What Would the Lessee Record as Annual Depreciation on the Asset