Darting Company purchased a computer system for $7,200 on January 1, 2014. 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) $200.
C) $2,400.
D) $7,200.

Question

Quizplus · Accepted Answer

The total cost of the computer system is $7,200, and it is expected to be used for 3 years. Therefore, the annual depreciation expense is $7,200 / 3 = $2,400. The monthly depreciation expense is $2,400 / 12 = $200.

Darting Company Purchased a Computer System for $7,200 on January