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25 December, 15:09

Hank's Tax Planning Service bought computer equipment for $19,200 on January 1, 2012. It has an estimated useful life of 4 years. Hank records depreciation monthly. As of September 30, 2012, Hank has recorded total depreciation expense for this equipment of:1. $24002. $36003. $4004. $14400

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  1. 25 December, 16:08
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    2. $3600

    Explanation:

    The computation of the depreciation expense under the Straight-line method: is shown below:

    = (Purchase value of computer equipment - residual value) : (estimated useful life)

    = ($19,200 - $0) : (4 years)

    = ($19,200) : (4 years)

    = $4,800

    The depreciation that is calculated above is on yearly basis. But on monthly basis, the depreciation should be calculated from January 1, 2012 to September 30, 2012 i. e for 9 months

    So, the depreciation would be

    = $4,800 * 9 months : 12 months

    = $3,600

    We assume the deprecation is calculated on the straight-line method
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