On October 1 2022 Mann Company places a new asset into service.The cost of the asset is $120000 with an estimated 5-year life and $30000 salvage value at the end of its useful life.What is the depreciation expense for 2022 if Mann Company uses the straight-line method of depreciation?
A)$4500.
B)$24000.
C)$6000.
D)$12000.

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost of asset - Salvage value) / Useful life= (120000 - 30000) / 5= 90000 / 5= $18000Depreciation expense for 2022 = 18000 * (10/12)= $15000

On October 1 2022 Mann Company Places a New Asset