Answer:
The depreciation expense for 2019 will be $12000.
The accumulated depreciation at the end of 2019 will be $24000.
Explanation:
Under the straight-line depreciation, the depreciation expense per year remains constant through out. The depreciation expense per year can be calculated using the following formula:
Straight-line depreciation expense per year:
(Cost - Salvage value) / estimated useful life
Depreciation expense per year = (64000 - 4000) / 5 = $12000 per year
The depreciation expense for 2019 will be $12000.
The accumulated depreciation at the end of 2019 will be the depreciation expense for 2018 and the 2019.
The accumulated depreciation at the end of 2019 will be,
12000 + 12000 = $24000
Answer:
Depreciation expense for 2019 is $12,000
Accumulated depreciation at the end of 2019 is $24,000
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
Mathematically,
Depreciation = (Cost - Salvage value)/Estimated useful life
The accumulated depreciation is the sum of the depreciation charge accumulated over time.
Depreciation = ($64,000 - $4,000)/5
= $12,000
Between January 1, 2018 and the end of 2019 is 2 years,
Accumulated depreciation = 2 * $12,000
= $24,000
