Bricker Enterprises purchased a machine for $100,000 on October 1, 2012. The estimated service life is ten years with a $10,000 residual value. Bricker records partial-year depreciation based on the number of months in service. Depreciation expense for 2012, using straight-line, is:

Question

Quizplus · Accepted Answer

Depreciation expense = ($100,000 - 10,000)/10 years x 3/12 = $2,250.

Bricker Enterprises Purchased a Machine for $100,000 on October 1