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AveGali [126]
3 years ago
5

ABC purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual valu

e of $5,000 at the end of five years. Using the straight-line method, depreciation expense for 2019 and the book value at December 31, 2019 would be:
Business
1 answer:
Sever21 [200]3 years ago
3 0

Answer:

Depreciation expense - 2019  = $11,000

Book Value - 2019  = $38,000

Explanation:

Straight Line method charges a fixed depreciation charge as :

Depreciation Expense = (Cost - Residual Value) ÷ Useful Life

therefore,

Depreciation expense = $11,000

Book Value = $60,000 - $11,000 - $11,000 = $38,000

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