Respuesta :
The depreciation for the first year is charged at $2,550 and for the rest of the years, it will be charged $5,100 on the equipment using the straight-line method.
What is Depreciation?
Depreciation is described as the reduction of the recorded value of a set asset in a scientific way till the value of the asset will become zero or negligible.
As per the information,
[tex]\rm\,Depreciation = \frac{Cost \,price - Residual\, Value }{Useful\, life}[/tex]
[tex]\rm\,Depreciation = \frac{16, 200 - 900}{3}\\\\\rm\,Depreciation = \$5,100[/tex]
Depreciation for the first year: $5,100 * 6/12 = $2,550 and for the rest of the years, it will be $5,100.
This is the depreciation expense amount which will be charged each year on the equipment, though for the first year, it will be charged for 6 months, and for the rest of the years, it will be charged for the complete one year.
Thus, The depreciation for the first year is charged at $2,550 and for the rest of the years, it will be charged $5,100 on the equipment.
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