Perfect competition is characterized by Group of answer choices many buyers and few sellers. many buyers and many sellers. few b
1 answer:
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Answer:
depreciation expense = $10500
correct option is a. $10,500
Explanation:
given data
Equipment costing = $70,000
salvage value = $14,000
estimated life = 8 years
revised estimated total life = 6 years
to find out
depreciation expense
solution
we know that Depreciation expense per year is here express as
Depreciation expense = (cost - Salvage value) ÷ useful life ...................1
put here value we get
Depreciation expense =
Depreciation expense = $7000 per year
so
book value as on beginning of year 3 is = 70000 - (7000 × 2)
book value as on beginning of year 3 is $56000
so
depreciation expense will be
depreciation expense =
depreciation expense = $10500
correct option is a. $10,500