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ikadub [295]
3 years ago
12

S10-5 (book/static) On February 28​, 2017​, Rural Tech Support purchased a copy machine for $ 53 comma 400. Rural Tech Support e

xpects the machine to last for six years and to have a residual value of $ 3 comma 000. Compute depreciation expense on the machine for the year ended December​ 31, 2017​, using the​ straight-line method.
Business
1 answer:
Andrews [41]3 years ago
3 0

Answer:

$7,000

Explanation:

depreciation expense using straight line method = (purchase cost - salvage value) / useful life = ($53,400 - $3,000) / 6 years ) = $8,400 per year

since the machine was used for 10 months, the depreciation expense for 2017 = $8,400 x 10/12 = $7,000

the adjusting journal entry should be:

December 31, 2017, depreciation expense

Dr Depreciation expense 7,000

    Cr Accumulated depreciation - copy machine 7,000

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