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A company purchased factory equipment on April 1, 2017, for $69600. It is estimated that the equipment will have a $12000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2017, is

Respuesta :

Answer:

The depreciation expense amounts to $4,320

Explanation:

Firstly, determine the rate

= Cost - Salvage Value / Number of years of useful life

= $69,600 - $12,000 / 10 years

= $57,600 / 10

= $5,760

On December 31, 2017, the depreciation amount would be

= $5,760 × 9 /12

= $ 4,320

From April 1, 2017 to December 31, 2017 it will have 9 months

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