Question

A company purchased factory equipment on June 1, 2018, for $170000. It is estimated that the equipment will have a $9200 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 ______

Answer 1

Answer: $16,080

Step-by-step explanation:

Depreciation expense using the straight line depreciation method = (Cost of asset - Salvage value) / useful life

Depreciation expense = ( $170,000 - $9200 ) / 10 = $16,080.