Question

The amount of depreciation expense for the first full year of use of a fixed asset costing $95,000, with an estimated residual value of $5,000 and a useful life of five years, is $19,000 by the straight-line method. True False

Answer 1

False

Step-by-step explanation:

Depreciation for on straight-line method:

Cost price: $ 95,000.00

Residual value: $ 5,000.00

Depreciable amount = $ 95,000- $ 5000

= $90,000.00

Depreciation per year= 1/5x 90,000

=0.2 x$ 90,000

=$18,000.00