Peavey Enterprises purchased a depreciable asset for $23,500 on April 1, Year 1.

Question

Peavey Enterprises purchased a depreciable asset for $23,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,300, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of:

A.) $5,875.00

B.) $4,416.67

C.) $21,200.00

D.) $5,300.00

E.) $20,316.67

Peavey Enterprises purchased a depreciable asset for $23,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,300, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of:

Explanation / Answer

Depreciation=Asset value-salvage value/useful life

=$23500-$2300/4

1st year Depreciation = $5300

2nd year =18200-2300/4 =3975

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.