Using the straight-line method,what is the amount of depreciation for the first full year?
A) $37 500
B) $42 500
C) $41 250
D) $40 000.

Question

Quizplus · Accepted Answer

The straight-line method of depreciation allocates the cost of an asset evenly over its useful life. The formula for calculating depreciation expense using the straight-line method is:Depreciation expense = (Cost of asset - Salvage value) / Useful lifeIn this case, the cost of the asset is $450,000, the salvage value is $25,000, and the useful life is 10 years. Therefore, the depreciation expense for the first full year is:Depreciation expense = (450,000 - 25,000) / 10 = $42,500

Using the Straight-Line Method,what Is the Amount of Depreciation for the First