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On January 1, Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500, and an estimated useful life of five years. Using the straight-line method, what is the amount that should be recorded as depreciation on December 31?
a. $135,000
b. $24.900
c. $124,500
d. $27,000

Respuesta :

Answer:

Depreciation = $24900

Explanation:

Below is the calculation of depreciation:

Cost of equipment = $135000

Salvage value = $10500

Useful life = 5 years

Depreciation = (Cost of machine - salvage value) / useful life

Depreciation = (135000 - 10500) / 5  

Depreciation = $24900

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