On January 1, a machine with a useful life of five years and a salvage value of $25,000 was purchased for $125,000.What is the depreciation expense for year 2 under straight-line depreciation?
A)$15,000
B)$75,000
C)$20,000
D)$60,000

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates depreciation by subtracting the salvage value from the purchase price and then dividing by the useful life. For this machine: ($125,000 - $25,000) / 5 = $20,000 per year.

On January 1, a Machine with a Useful Life of Five