Respuesta :
Answer:
$2,340 and $3,120
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($17,500 - $1,900) ÷ (5 years)
= ($15,600) ÷ (5 years)
= $3,120
For year 2021, the depreciation is to be charged for 9 months i.e from April 1 to December 31
= $3,120 × 9 months ÷ 12 months
= $2,340
And, for the year 2022, it is same i.e $3,120
In this method, the depreciation is same for all the remaining useful life
Answer:
$2,340; $3,120
Explanation:
Given that,
Amount of acquiring equipment = $17,500
Residual value = $1,900
Service life = 5 years
Depreciation refers to the fall in the value of the fixed assets with the passage of time.
Here, we are using straight line method,
Depreciation = (Equipment value - Residual value) ÷ Service life
= ($17,500 - $1,900) ÷ 5
= $15,600 ÷ 5
= $3,120
Depreciation expense for 2021 at December 31:
This is only for 9 months from April 1, 2021 to December 31, 2021.
= $3,120 × (9 months/ 12)
= $2,340
Depreciation expense for 2022 at December 31:
This is for the whole year, so the depreciation expense will be $3,120.
