Use the information below to answer the following questions.
Alby Ltd purchased a machine for $32,000 on 1 January 2010. The machine was expected to have a useful life of 4 years. The financial year ends on 31 December. The straight-line method of depreciation is employed.
-What was the depreciation expense for year ended 31 December 2010?
A) $10 500
B) $9250
C) $8500
D) $8000.

Question

Quizplus · Accepted Answer

The straight-line depreciation method divides the cost of the asset by its useful life. $32,000 / 4 years = $8,000 per year.

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