Kansas Enterprises purchased equipment for $60,000 on January 1,2018.The equipment is expected to have a five-year life,with a residual value of $5,000 at the end of five years.Using the straight-line method,depreciation expense for 2018 would be:

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates annual depreciation by subtracting the residual value from the cost and dividing by the useful life. ($60,000 - $5,000) / 5 years = $11,000 per year.

Kansas Enterprises Purchased Equipment for $60,000 on January 1,2018