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Angelina_Jolie [31]
4 years ago
14

Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation

and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be
a. $11,760.
b. $9,600.
c. $9,840.
d. $14,160.
Business
1 answer:
Sholpan [36]4 years ago
6 0

Answer:

a. $11,760. 

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Cost of asset = $60,000 + $8,000 + $2,800 = $70,800

($78,800 - $12,000) / 5 = $11,760. 

I hope my answer helps you

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