Question

A building was purchased on August 1 for $490,000. It has a salvage value of $38,000 and a useful life of 30 years. To the nearest dollar, how much will the depreciation expense for the building be for the first year ended December 31, using the straight-line method? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

A. $15,067

B. $6,278

C. $16,333

D. $6,805

Answer 1

The depreciation expense for the building for the first year, using the straight-line method, would be $15,067.

Step-by-step explanation:

To calculate the depreciation expense using the straight-line method,

we need to subtract the salvage value from the initial cost of the building and then divide it by the useful life.

In this case, the depreciation expense for the first year would be ($490,000 - $38,000) / 30 = $15,067.