A company purchased a computer system on March 1.Its cost was $35,000 and it had an estimated salvage value of $5,000.It was expected to have a useful life of four years.To the nearest dollar,the depreciation for year 2 using straight-line depreciation will be:
A)$8,750.
B)$7,500.
C)$6,250.
D)$5,625.

Question

Quizplus · Accepted Answer

Straight-line depreciation is calculated by subtracting the salvage value from the cost and then dividing by the useful life. ($35,000 - $5,000) / 4 = $7,500 per year.

A Company Purchased a Computer System on March 1