Answer:
The amount of depreciation expense for Year 2 is $ 10,000.
Explanation:
Determine the rate of depreciation per year.
Rate of depreciation = depreciation base/Useful life
Useful life = 4 years
Depreciation base = Acquisition cost - Residual/Salvage value
Depreciation base = 25.000 - 5,000
Therefore depreciation base = $20,000
Rate of depreciation = depreciation base/Useful life
Rate of depreciation = 20,000 / 4
Rate of depreciation = $ 5,000.
Determine the amount of depreciation expense for year 2.
Amount of depreciation expense = Rate of depreciation × Number years
Amount of depreciation expense = 5,000 × 2
Amount of depreciation expense = $10, 000.
