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Artyom0805 [142]
3 years ago
7

On October 1, 2022, Sheridan Company places a new asset into service. The cost of the asset is $81000 with an estimated 5-year l

ife and $21000 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Sheridan Company uses the straight-line method of depreciation
Business
1 answer:
Ahat [919]3 years ago
8 0

Answer:

the depreciation expense for 2022 is $3,000

Explanation:

Straight line method of depreciation charges a fixed amount of depreciation over the period of use of an asset.

Depreciation Expense = (Cost - Residual Value) / Number of useful life

                                      =  ($81000 - $21000) / 5

                                      =  $12,000

The Annual depreciation charge for this machine will be $12,000 for each of the years that it is used in the business.

However since it was paced in use during the year that is 1 October, we have to apportion the Annual charge withe number of months that its has been in use during 2022.

It has been used for 3 months thus depreciation charge is :

Depreciation = 3/ 12 × $12,000

                      = $3,000

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<h3>What are the 3 financing activities?</h3>
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According to the question:

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brainly.com/question/735261

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Explanation:

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