contestada

A company purchased factory equipment on April 1, 2018 for $174000. It is estimated that the equipment will have a $22000 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, 2018 is

Respuesta :

ayokenny2001

Answer:

$11,400

Explanation:

Cost of factory equipment

$174,000

Less:

Salvage value

($22,000)

Balance

$152,000

Useful life 10 years

= $152,000 / 10

= $15,200

Machinery used for 9 months. I.e (1 April to 31 December)

= 9/12 × $15,200

= $11,400

Therefore, the amount to be recorded as depreciation expense at 31 December 2018 is $11,400

Otras preguntas