MacGyver Company bought equipment on January 3, 2019, for $34,700. At the time of purchase, the equipment was estimated to have a useful life of 5 years and a salvage value of $1,220. Using the straight-line method, the amount of one year's depreciation is

The amount of one year's depreciation is $6,696

Explanation:

Depreciation expense is the difference between the cost of the asset and the residual value, divided by the useful life of the asset.

Depreciation expense = (original cost-residual cost) / useful life

Depreciation expense = ($34,700-$1,220) / 5

Depreciation expense=6.696