SportsWorld purchased equipment costing $10,000.The equipment has a residual value of $1,000,and an estimated useful life of 5 years or 36,000 shoes.Actual units produced during the year were 7,000 units.Calculate annual depreciation using the straight line method.

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost - Residual value) / Useful life= (10,000 - 1,000) / 5= $1,800

SportsWorld Purchased Equipment Costing $10,000