Peavey Enterprises purchased a depreciable asset for $22,000 on April 1,Year 1.The asset will be depreciated using the straight-line method over its four-year useful life.Assuming the asset's salvage value is $2,000,Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of:
A)$10,000
B)$5,000
C)$5,500
D)$20,000
E)$9,250

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost - Salvage value) / Useful life= (22,000 - 2,000) / 4= 20,000 / 4= $5,000

Peavey Enterprises Purchased a Depreciable Asset for $22,000 on April