Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
The depreciation expense to be recognized by Joseph in year 1 is $62,500.
What is depreciation?
Depreciation is the gradual fall in the value of a fixed asset over its economic life. It doesn't apply to intangible assets.
Given values:
The purchase cost of equipment: $325,000
Residual value: $75,000
Number of years of useful life: 4
Computation of depreciation expense for the year 1:
[tex]\rm\ Depreciation \rm\ expense=\frac{\rm\ Purchase \rm\ cost - \rm\ Residual \rm\ value}{\rm\ Useful \rm\ life} \\\\rm\ Depreciation \rm\ expense=\frac{\$325,000-\$75,000}{4} \\\rm\ Depreciation \rm\ expense=\$62,500[/tex]
Therefore, the amount of depreciation charge comes out to be $62,500 to be reported in year 1.
Learn more about the depreciation charge in the related link:
https://brainly.com/question/13127865
#SPJ1
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.
