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Natali [406]
3 years ago
13

Oakland Tax Planning Service bought computer equipment for $22,000 on January 1, 2018. It has an estimated useful life of four y

ears and zero residual value. Oakland uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of each month. Calculate the amount of Depreciation Expense for the period, January 1, 2018 through September 30, 2018, for this equipment. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Business
1 answer:
Sophie [7]3 years ago
8 0

Answer:

depreciation expense    4,125 debit

       accumulated depreciation          4,125 credit

Explanation:

computer equipment cost: 22,000

salvage value: zero

usefil life: 4

method of depreciation: straight-line

\frac{cost-salvage}{useful \: life}

\frac{22,000-0}{4}

yearly depreciation: 5,500

Then, we need to depreciate from January 1st, 2018 to September 30th,2018

5,500 x 9/12 =  4,125 depreicaiton during the period

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