During the Great Depression, aggregate demand in the U.S. economy decreased. As a result, the price level ________ and real gros
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Answer: <u>$4,500</u>
Explanation:
Equipment was purchased for $76,000.
It has an estimated useful life of 8 years.
It will be sold for $4,000 after these 8 years so that is the salvage value.
With these figures depreciation per annum is calculated with the following formula;
=
= $9,000
The Equipment was purchased on July 1, Year 1. In Year 1 therefore it will only be in use for half the year and this is what it should b depreciated in light of.
Semi-annual Depreciation = 9,000/2
= <u>$4,500</u>