Answer:
Depreciation expense= $36,875
Step-by-step explanation:
Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.
An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:
Annual depreciation:
= (cost of assets - salvage value)/ Estimated useful life
Cost - 220,000
Residual value = 43,000
Estimated useful life = 4 years
Annual depreciation = (220,000- 43,000)/4 =44,250
Annual depreciation = 44,250.
Under the half-month convention, a full month depreciation is charged where an asset is first put to at the middle month of the month.
Thus March 17, 2018 to December 2018 is taken to be 10 full months
Depreciation expense = 44,250.× 10/12 = 36,875
Depreciation expense= $36,875