Ask Question
1 February, 23:42

A machine is purchased on September 30, 2018, for $60,000. Useful life estimated at four years and no residual value is anticipated. The straight-line depreciation method is used. The company's fiscal year ends on December 31. Depreciation for 2018 should be

1.$6,000

2.$30,000

3.$11,250

4.$3,750

+4
Answers (1)
  1. 2 February, 02:15
    0
    4.$3,750

    Explanation:

    The computation of the depreciation expense using the straight line method is shown below:

    = (Original cost - residual value) : (useful life)

    = ($60,000 - $0) : (4 years)

    = ($60,000) : (4 years)

    = $15,000

    But we have to compute for 3 months i. e September 30, 2018 to December 31 2018

    = $15,000 * 3 months : 12 months

    = $3,750
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A machine is purchased on September 30, 2018, for $60,000. Useful life estimated at four years and no residual value is anticipated. The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers