contestada

On December 1st, 2022, Acme Company places a new asset into service. The cost of the asset is $50,000 with an estimated 5-year life and $10,000 salvage value at the end of its useful life. What is the depreciation expense for 2023 if Acme Company uses the straight-line method of depreciation

Respuesta :

Samawati

Answer:

$8000

Explanation:

In 2023, the asset operated for a full year( 12 months)

Under the straight-line depreciation, the depreciation amount is constant throughout the life of an asset.

For acme, the deprecation amount for this asset will be

$50,000-$10,000

=$40,000

For five years, each will year the amount will be

Depreciation rate = 1/5 x 100= 20%

Depreciation amount = 20% of $40,000

=20/100 x $40,000

=$8,000

Otras preguntas