Question

A company purchased factory equipment on April 1, 2017, for $116800. It is estimated that the equipment will have a $16000 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:_________

Answer 1

$7,560

Step-by-step explanation:

Calculation for the amount to be recorded as depreciation expense at December 31, 2017

Depreciation expense =( $116,800- $16,000 )

Depreciation expense = $100,800

Depreciation expense =$100,800 / 10 years

Depreciation expense = $10,080

Depreciation expense = 10,080 * (9/12)

Depreciation expense = $7,560

Therefore the amount to be recorded as depreciation expense at December 31, 2017 is $7,560