A machine costing $57,000 with a 6-year life and $54,000 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation.
A) $9,500
B) $9,000
C) $10,800
D) $11,400

Question

Quizplus · Accepted Answer

The straight-line depreciation expense is calculated by dividing the depreciable cost by the useful life of the asset. Here, $54,000 / 6 years = $9,000 per year.

A Machine Costing $57,000 with a 6-Year Life and $54,000