Suppose a local bank increases the fees they charge for their bank accounts by 2020 percent. In response, the demand for their
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Answer:
The depreciation expense for the first year is $8,000,000
Explanation:
Depreciation: The depreciation is an expense which reduce the value of the fixed assets due to tear and wear, usage, obsolesce, etc. It is shown under the income statement in the debit side and the accumulated depreciation would be shown in the asset side of the balance sheet. It is deducted from the ending value of the fixed assets.
The formula to compute the depreciation expense under straight line method is shown below:
=
=
= $8,000,000
In straight line method, the depreciation expense would remain same over the useful life i.e 4 years.
And, we do not consider the miles so we ignored it.