Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the second-year depreciation using the straight-line method.
A) $13,200
B) $19,200
C) $9,600
D) $9,000

Question

Quizplus · Accepted Answer

Annual Depreciation = (Cost - Residual Value) / Useful Life = ($57,000 - $9,000) / 5 = $9,600
Depreciation expense for the second year = $9,600

Computer Equipment Was Acquired at the Beginning of the Year