contestada

On November 1, 2013, Love Company places a new asset into service. The cost of the asset is $45,000 with an estimated 5-year life and $5,000 salvage value at the end of its useful life. What is the depreciation expense for 2014 if Love Company uses the straight-line method of depreciation?

Respuesta :

cecylya

Answer:

Explanation:

Spreadsheet is attached with the calculus.  

Depreciation expense is the difference between the cost of the asset and the residual value, divided by the useful life of the asset.

Situation      

Original Value: 45.000 $

Residual Value: 5000 $

Useful life: 5 years

   

Straight-line    

depreciation expense= (Original Value-Residual Value)/ Useful life

depreciation expense=(45.000-5000)/ 5

depreciation expense= 8000

Ver imagen cecylya

Otras preguntas