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Damm [24]
3 years ago
11

Equipment was purchased for $161500. Freight charges amounted to $5500 and there was a cost of $10000 for building a foundation

and installing the equipment. It is estimated that the equipment will have a $38000 salvage value at the end of its 5-year useful life. Depreciation Expense each year using the straight-line method will be
Business
1 answer:
NISA [10]3 years ago
4 0

Answer:

$27,800

Explanation:

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

Cost of asset = $161500 + $5500 +  10000 =$177,000

$177,000 - $38000 = $139,000 / 5 =$27,800

depreciation expense each year would be $27,800

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