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exis [7]
3 years ago
15

On june 30, 2016, colora printers purchaed a printer for 69,000. it expects the printer to last for four years and have a residu

al value of 10,000. compute the depreciation expense on the printer for the year ended december 31, 2016, using the straight line method.
Business
1 answer:
krok68 [10]3 years ago
3 0

Answer:

The depreciation expense on the printer for the year ended december 31, 2016 was $7,375

Explanation:

Colora Printers uses the straight-line method of depreciation, Depreciation Expense each year is calculated by following formula:  

Annual Depreciation Expense = (Cost of the printer − Residual Value)/Useful Life  = ($69,000 - $10,000)/4 = $59,000/4 = $14,750

In 2016, the printer was used from June 30 to December 31 (6 months - half-year).

Depreciation Expense for 2016 = ($14,750/12) x 6 = $7,375

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