Question

A company purchased factory equipment on April 1, 2007, for $48,000. It is estimated that the equipment will have a $6,000 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, 2007, isa. $4,800b. $4,200c. $3,150d. $3,600

Answer 1

Answer:The answer is B $4,200

Step-by-step explanation:

Cost - Salvage Value/Useful life

Cost=$48,000 Salvage Value = $6,000 Useful life =10 years

48,000 - 6,000/10

=42,000/10

=4,200

Therefore the amount to be recorded as depreciation expenses at December 31st 2007 is $4,200