Asked by
Brandi Ashley
on Nov 18, 2024
Verified
Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,100 hours?
A) $19,000
B) $21,000
C) $22,000
D) $30,000
Straight-Line Method
An approach for calculating depreciation of an asset, which spreads the cost evenly over its useful life.
Depreciation
A process for spreading out the expense of a physical asset across its lifespan.
Residual Value
The estimated value that an asset will realize upon its sale at the end of its useful life.
- Discern and quantify multiple depreciation strategies for tangible properties.
Verified Answer
PS
Learning Objectives
- Discern and quantify multiple depreciation strategies for tangible properties.
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