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A company purchased factory equipment on April 1, 2021 for $153000. It is estimated that the equipment will have a $15000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021 is
A company purchased factory equipment on April 1, 2021 for $153000. It is estimated that the equipment will have a $15000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021 is
Final answer:The amount to be recorded as depreciation expense at December 31, 2021 using the straight-line method is$13,800.Explanation:To calculate the depreciation expense using the straight-line method, you need to determine the annual depreciation amount. The formula for straight-line depreciation is:(Cost - Salvage Value) / Useful LifeIn this case, the cost of the factory equipment is $153,000 and the salvage value is $15,000. The useful life is 10 years.Using the formula, the annual depreciation expense would be:($153,000 - $15,000) / 10 = $13,800Learn more about Depreciation here:brainly.com/question/33528280#SPJ11...
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