Morgan Company purchased equipment on April 1, 2010, for $60,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
I am having an issuing trying to compute the amount of depreciation expense for the year ended in December 31, 2010, using straight-line method of depreciation.
Now is the answer, 60,000 - 5,000 / 5 = 11,000 or is it 60,000 - 5,000 / 5 / 9/12
Having trouble figuring this out
Thanks!
So you just do 60,000 - 5,000 / 5 x 9/12
I am having an issuing trying to compute the amount of depreciation expense for the year ended in December 31, 2010, using straight-line method of depreciation.
Now is the answer, 60,000 - 5,000 / 5 = 11,000 or is it 60,000 - 5,000 / 5 / 9/12
Having trouble figuring this out
Thanks!
So you just do 60,000 - 5,000 / 5 x 9/12