Question

Hope for the homeless purchased kitchen equipment for $47,000 with a residual value of $17,000 and a life expectancy of 5 years. using straight-line depreciation, the amount of the depreciation adjustment for the first year would be

Answer 1

The amount of the depreciation adjustment for the first year using straight-line depreciation is $6,000.

Step-by-step explanation:

The amount of the depreciation adjustment for the first year can be calculated using the straight-line depreciation method. This method distributes the cost of an asset evenly over its useful life. To calculate the annual depreciation, we subtract the residual value from the initial cost and divide it by the useful life. In this case, the initial cost is $47,000, the residual value is $17,000, and the useful life is 5 years. So, the annual depreciation would be:

$47,000 - $17,000 = $30,000

$30,000 / 5 years = $6,000

Therefore, the amount of depreciation adjustment for the first year would be $6,000.