The Samuel Company Uses the Straight-Line Method to Depreciate Its

question 65

Multiple Choice

The Samuel Company uses the straight-line method to depreciate its equipment. On May 1, 2015, the company purchased some equipment for $224,000. The equipment is estimated to have a useful life of ten years and a salvage value of $20,000. On December 31, 2015, how much depreciation expense should Samuel record for the equipment in the adjusting entry?

• A) $20,400
• B) $18,500
• C) $13,600
• D) $8,500

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