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iren2701 [21]
3 years ago
11

On october 1, 2016, dew company places a new asset into service. the cost of the asset is $80,000 with an estimated eight-year l

ife and $8,000 salvage value at the end of its useful life. what is the depreciation expense for 2017 if dew company uses the straight-line method of depreciation?
a.$375
b.$9,000
c.$10,000
d.$2,250
Mathematics
1 answer:
Lelu [443]3 years ago
6 0
<span>The annual depreciation expense is $9,000, calculated as follows Cost of the asset is $80,000 less $8,000 salvage value which reduces the cost to $72,000. Useful life is 8 years. To determine annual depreciation expense using straight-line method, divide asset cost of $72,000 by 8 years of useful life equals $9,000 per year.</span>
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