Ask Question
24 July, 23:37

Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,750 at the end of five years. Using the straight-line method, depreciation expense for 2021 would be: Multiple Choice $14,350. $17,050. $31,400. $15,700.

+4
Answers (1)
  1. 25 July, 00:23
    0
    Using the straight-line method, depreciation expense for 2021 would be: $14,350

    Explanation:

    Kansas Enterprises

    Cost of equipment $78,500

    Residual value of $6,750

    Useful Life = 5 years

    Formula

    Depreciation Straight Line Method = Cost - Salvage Value / Useful Life

    Working:

    Depreciation Straight Line Method=$78,500 - $6,750/5

    Depreciation Straight Line Method=71750/5

    Depreciation Straight Line Method=$ 14350

    Using the straight-line method, depreciation expense for the whole year 2021 would be: $14,350.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers