Question

g On January 1, Year 1, Anon Company paid $110,000 cash to purchase equipment. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Assuming that Anon depreciates its assets using the straight-line method of depreciation, the amount of depreciation expense appearing on the Year 4 income statement and the amount of accumulated depreciation appearing on the December 31, Year 4, balance sheet would be:

Answer 1

Answer:

$68,000

Explanation:

Deprecation is a method used in expensing the cost of an asset.

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

( $110,000 - $8,000) / 6 = $17,000

Each year, the depreciation expense is $17,000.

at the end of the fourth year, deprecation expense = $17000 × 4 = $68,000

I hope my answer helps you