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Artemon [7]
3 years ago
5

On june 1, aaron company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated usefu

l life of 3 years and 30,000 hours. ​ using straight-line depreciation, calculate the depreciation expense for the final (partial) year of service, which ends on december 31. ​
Business
1 answer:
Leto [7]3 years ago
8 0
The partial year of service is from Januarry to May.

Thus, using straight line mathod, the <span>depreciation expense on the equipment for the year is given by:

\frac{5}{12} \left( \frac{90,000}{3} \right)= \frac{5}{12} (30,000)=\$12,500</span>
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