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13 February, 08:10

MacGyver Company bought equipment on January 3, 2019, for $34,700. At the time of purchase, the equipment was estimated to have a useful life of 5 years and a salvage value of $1,220. Using the straight-line method, the amount of one year's depreciation is

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  1. 13 February, 09:05
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    The amount of one year's depreciation is $6,696

    Explanation:

    Depreciation expense is the difference between the cost of the asset and the residual value, divided by the useful life of the asset.

    Depreciation expense = (original cost-residual cost) / useful life

    Depreciation expense = ($34,700-$1,220) / 5

    Depreciation expense=6.696
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