Answer:
The second year’s depreciation for this equipment using the straight line method is 8,500
Explanation:
Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.
The formula to compute the depreciation under straight lie method is shown below:
= [tex]\dfrac{(original\ cost - salvage\ value)}{useful\ life}[/tex]
= [tex]= \dfrac{(\$100,000 - \$15,000)}{10}[/tex]
= $8,500
The depreciation amount under straight line method should remain same over the estimated useful life
So, the second year’s depreciation for this equipment is $8,500
