Answer:
Explanation:
The computation of the depreciation expense under straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($42,000 - $1,990) ÷ (5 years)
= ($40,010) ÷ (5 years)
= $8,002
In this method, the depreciation is same for all the remaining useful life
The journal entries are shown below:
For 2019
Depreciation expense A/c Dr $8,002
To Accumulated Depreciation A/c $8,002
(Being depreciation expense is recorded)
For 2020
Depreciation expense A/c Dr $8,002
To Accumulated Depreciation A/c $8,002
(Being depreciation expense is recorded)
