Henry-K Company purchased a computer system for $3,600 on January 1, 2010. The company expects to use the computer system for 3 years. It has no salvage value. Monthly depreciation expense on the asset is
A) $0.
B) $100.
C) $1,200.
D) $3,600.

Question

Quizplus · Accepted Answer

The total cost of $3,600 is spread over 3 years, which is 36 months. Therefore, the monthly depreciation expense is $3,600 / 36 = $100.

Henry-K Company Purchased a Computer System for $3,600 on January