Question

Question 1 (1 point)
Laurey's Pet Emporium purchased equipment on January 1 for $35,000. The equipment will be used for five years, after which the estimated
residual value will be $2,000. Using straight-line depreciation, what is the depreciation expense for the first year of the asset's life?
a
$7,000

Answer 1

The depreciation expense of the asset using the straight-line depreciation method for the first year will be $6,600.

What do you mean by straight-line depreciation?

The most generally used and simple depreciation technique for allocating the value of a capital asset is known as Straight-line depreciation.

It is calculated with the aid of using sincerely dividing the value of an asset, reducing the amount of its salvage value, with the aid using the beneficial life of the asset.

As per the given information,

Depreciation expense = Asset price - residual value / useful life

Depreciation expense  = $33,000 - $2,000/5

Depreciation expense = $6,600

Therefore, The depreciation expense of the asset using the straight-line depreciation method for the first year will be $6,600.

Learn more about straight-line depreciation:

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