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)$9,000
D)$9,600

Question

Quizplus · Accepted Answer

Using the straight-line method, the annual depreciation is calculated as follows:

Depreciation expense = (Cost - Residual value) / Useful life

Depreciation expense = ($57,000 - $9,000) / 5 years = $9,600 per year

To determine the second-year depreciation, we simply need to subtract the first-year depreciation from the total depreciation expense:

Second-year depreciation = Depreciation expense - First-year depreciation

Second-year depreciation = $9,600 - $9,600 = $9,600

Therefore, the correct answer is D) $9,600.

Computer Equipment Was Acquired at the Beginning of the Year