Final answer:
The amount of depreciation for the first full year using the straight-line method for equipment with a cost of $160,000, an estimated residual value of $10,000, and an estimated life of 5 years is $30,000. The number of hours the equipment was used does not affect the straight-line depreciation calculation.
Step-by-step explanation:
The question asks for the calculation of the first full year of depreciation for equipment using the straight-line method. To calculate the annual depreciation expense, subtract the residual value from the cost of the equipment and then divide by the useful life of the asset. The formula is as follows:
Annual Depreciation Expense = (Cost of the Equipment - Residual Value) ÷ Estimated Useful Life
In this case:
Annual Depreciation Expense = ($160,000 - $10,000) ÷ 5 years
Annual Depreciation Expense = $150,000 ÷ 5
Annual Depreciation Expense = $30,000
The number of hours the equipment was used during the year does not affect the calculation for straight-line depreciation; therefore, even though the equipment was used for 3,300 hours, the depreciation expense remains $30,000 for the first year.