contestada

Taco Hut purchased equipment on May 1, 2012, for $14,000. Residual value at the end of an estimated 8-year service life is expected to be $3,000.
Calculate depreciation expense using the straight-line method for 2012 and 2013, assuming a December 31 year-end. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
Year Depreciation
Expense
2012 $
2013 $

Respuesta :

Answer:

For 2012 = $7,333

For 2013 = $11,000

Explanation:

The calculation of depreciation expense is shown below:-

For 2012

Annual Depreciation = Original Cost - Salvage value ÷ Life of the asset

= $14,000 - $3,000

= $11,000

Depreciation expense for 2012 = Annual Depreciation × Service life ÷ Total number of months in a year

= $11,000 × 8 ÷ 12

= $7,333

Depreciation expense for 2013 (12 months) = $11,000

Otras preguntas