Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value.Under the straight-line method,monthly depreciation will be
A) $600.
B) $720.
C) $60.
D) $12.

Question

Quizplus · Accepted Answer

The straight-line depreciation method divides the cost of the asset by its useful life. $36,000 divided by 5 years equals $7,200 per year. Dividing $7,200 by 12 months gives $600 per month.

Equipment Cost $36,000 and Is Expected to Be Useful for 5