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12 November, 11:28

On October 1, year 1, Kirby Corp. purchased equipment for $100,000. The equipment has a useful life of 5 years with no residual value. Kirby uses the straight-line method of depreciation. The partial year depreciation for year 1 is

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  1. 12 November, 11:42
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    5000 partial depreciation

    Explanation:

    straight line formula is = cost - scrape value

    useful life in years

    since there is no residual value (scrape value) therefore, we divide 100,000

    5

    the answer we get 20000 per year depreciation. but the equipment is bought on 1st oct, and if assume that the year ends on Dec, 31 so it is measure for 3 month depreciation which is 5000.
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