A machine with a salvage value of $4,000 and a cost of $36,000 was purchased on January 1,2012.What is the depreciation expense for 2012 if the company uses straight-line depreciation for 10 years?
A)$36,000
B)$32,000
C)$3,600
D)$3,200

Question

Quizplus · Accepted Answer

The straight-line depreciation method calculates depreciation by subtracting the salvage value from the cost and then dividing by the useful life. ($36,000 - $4,000) / 10 = $3,200.

A Machine with a Salvage Value of $4,000 and a Cost