Equipment with a Cost of $220,000 Has an Estimated Residual

question 98

Multiple Choice

Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,100 hours?

• A) $19,000
• B) $21,000
• C) $22,000
• D) $30,000

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Definitions:

Convert

To change something into a different form or properties, often used in context with currency, securities, or data transformation.