Question

Bricker enterprises purchased a machine for $207,000 on october 1, 2018. the estimated service life is ten years with a $20,500 residual value. bricker records partial-year depreciation based on the number of months in service. depreciation expense for the year ended december 31, 2018, using straight-line depreciation, is (do not round your intermediate calculations. round your answer to the nearest dollar amount):

Answer 1

Straight Line Depreciation per year= (Total Value of the asset-Residual Value)/No of years of useful life

=(207000-20500)/10

=$18650

Depreciation in 2018= 3 months(Oct,18 to Dec,18)

Depreciation for 3 months= $18650/12*3

=$4663