On june 1, Scooter company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated use

Question

3 years ago

15

On june 1, Scooter company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated use

ful life of 3 years or 30,000 hours. using straight-line depreciation, calculate depreciation expense for the second year.a. $17,500b. $30,000c. $40,000d. $12,500

Business

1 answer:

jeyben [28] · Answer 1 · 2022-08-17T01:28:47+03:00

Answer:

The correct answer is b. $30,000.

Explanation:

The depreciation is systematic allocation of cost of asset over its useful life. In straight line method cost is allocated evenly during the period of asset usage. Detail calculations are given below.

Depreciation expense = Cost of asset/Useful Life

= 90,000/3

= 30,000