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oee [108]
3 years ago
13

Oakland Tax Planning Service bought computer equipment for on January​ 1, 2018. It has an estimated useful life of four years an

d zero residual value. Oakland uses the straightline method to calculate depreciation and records depreciation expense in the books at the end of each month. Calculate the amount of Depreciation Expense for the​ period, January​ 1, 2018 through September​ 30, 2018, for this equipment.​ (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)
A. $6,000

B. $6,500

C. $4,500

D. $5,000
Business
1 answer:
sergejj [24]3 years ago
4 0

Answer:

C. $4,500

Explanation:

The computation of the depreciation expense using the straight-line method is shown below:

= (Cost - residual value) ÷ Useful life of the asset  

= $24,000 ÷  48 months  

= $500  

Now for 9 months, it is

= $500 × 9 months

= $4,500

Hence, the depreciation expense is $4,500

Therefore the correct option is c. $4,500

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