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peavey enterprises purchased a depreciable asset for $22,000 on april 1, year 1. the asset will be depreciated using the straight-line method over its four-year useful life. assuming the asset's salvage value is $2,000, peavey enterprises should recognize depreciation expense in year 2 in the amount of: multiple choice $10,000 $5,000 $5,500 $20,000 $9,250
peavey enterprises purchased a depreciable asset for $22,000 on april 1, year 1. the asset will be depreciated using the straight-line method over its four-year useful life. assuming the asset's salvage value is $2,000, peavey enterprises should recognize depreciation expense in year 2 in the amount of: multiple choice $10,000 $5,000 $5,500 $20,000 $9,250
Final answer:Using the straight-line method of depreciation, taking the difference between the cost of purchase and salvage value of an asset and dividing it by its useful life, we calculate Peavey Enterprises' year 2 depreciation expense to be $5,000.Explanation:The answer involves deciding how much thedepreciation expensefor the asset will be forPeavey Enterprisesin year 2. Since the method of depreciation is straight-line, the yearly depreciation is determined by subtracting the salvage value from the cost of purchase and dividing it by the useful life of the asset. In this case, it will be(22,000 - 2,000) / 4= $5,000. Therefore, the depreciation expense for Peavey Enterprises in year 2 will be $5,000.Learn more about Depreciation Expense here:brainly.com/question/34234542#SPJ4...