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On june 1, aaron company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours. ​ using straight-line depreciation, calculate the depreciation expense for the final (partial) year of service, which ends on december 31. ​

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nobillionaireNobley
The partial year of service is from Januarry to May.

Thus, using straight line mathod, the depreciation expense on the equipment for the year is given by:

[tex] \frac{5}{12} \left( \frac{90,000}{3} \right)= \frac{5}{12} (30,000)=\$12,500[/tex]

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