Answer:
Is reported a Depreciation expense of $ 2,000,000 in the general fund's operating statement, related to this equipment, in 2015. The right answer is C
Explanation:
According to the given data we have the following:
equipment cost at the beginning of 2015=$16,000,000
equipment useful life=8-year
Therefore in order to to calculate what is reported in the general fund's operating statement, related to this equipment, in 2015 we would have to calculate the straight line depreciation with the following formula:
Straight line depreciation =( Cost - salvage value ) / useful life
Straight line depreciation =
( $16,000,000-0 ) / 8
Straight line depreciation =$ 2,000,000
Therefore, is reported a Depreciation expense of $ 2,000,000 in the general fund's operating statement, related to this equipment, in 2015
