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german
3 years ago
7

Hank’s Tax Planning Service bought computer equipment for $19,200 on January 1, 2012. It has an estimated useful life of 4 years

. Hank records depreciation monthly. As of September 30, 2012, Hank has recorded total depreciation expense for this equipment of:1. $24002. $36003. $4004. $14400
Business
1 answer:
Olegator [25]3 years ago
3 0

Answer:

2. $3600

Explanation:

The computation of the depreciation expense under the Straight-line method: is shown below:

= (Purchase value of computer equipment - residual value) ÷ (estimated useful life)

= ($19,200 - $0) ÷ (4 years)

= ($19,200) ÷ (4 years)  

= $4,800

The depreciation that is calculated above is on yearly basis. But on monthly basis, the depreciation should be calculated from January 1, 2012 to September 30, 2012 i.e for 9 months

So, the depreciation would be

=  $4,800 × 9 months ÷ 12 months

= $3,600

We assume the deprecation is calculated on the straight-line method

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