Easton Company purchased equipment that cost $55,000 cash on January 1, 2012. The equipment had an expected useful life of six years and an estimated salvage value of $4,000. Assuming that Easton depreciates its assets under the straight-line method, the amount of depreciation expense appearing on the 2015 income statement and the amount of accumulated depreciation appearing on the December 31, 2015 balance sheet would be:

Question

Quizplus · Accepted Answer

($55,000 - $4,000)/6 years = $8,500 depreciation expense each year; $8,500 x 4 years = $34,000 accumulated depreciation expense at the end of 2015.

Easton Company Purchased Equipment That Cost $55,000 Cash on January