Final answer:
Ace Electronics can record a total depreciation expense of $2,500 for the cash register over its 4-year useful life, calculated using the straight-line depreciation method.
Step-by-step explanation:
On January 1, 2015, Ace Electronics bought a new cash register for $2,500. The company estimates the useful life of the cash register to be 4 years with a $0 residual value. For tax purposes, the total depreciation expense that Ace Electronics can record over the cash register's useful life is calculated using straight-line depreciation. The formula for straight-line depreciation is:
Annual Depreciation Expense = (Cost of the Asset – Residual Value) / Useful Life
Substituting the values:
Annual Depreciation Expense = ($2,500 – $0) / 4 years
Annual Depreciation Expense = $625 per year
Over the 4-year useful life, the total depreciation expense will be:
4 years × $625 per year = $2,500
Thus, the total depreciation expense Ace Electronics can record for the cash register for tax purposes over its 4-year useful life is $2,500.