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Windsor, Inc. purchased equipment on January 1, 2021 for $99,000. It is estimated that the equipment will have a $5,500 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 110,000 units over its 5-year life. Answer the following independent questions.
Compute the amount of depreciation expense for the year ended December 31, 2021 using the straight-line method of depreciation. Straight-line method $enter the depreciation expense under the straight-line method for the year ended December 31, 2016 in dollars per year.

Sagot :

Answer:

the depreciation expense under the straight-line method for the year 2021 is $18,700

Explanation:

The computation of the depreciation expense under the straight-line method is shown below for the year 2021 ;\

= (Purchase cost of an equipment - salvage value) ÷ (useful life)

= ($99,000 - $5,500) ÷ 5 years

= $18,700

Hence, the depreciation expense under the straight-line method for the year 2021 is $18,700

The same would be considered

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