Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Join our Q&A platform and get accurate answers to all your questions from professionals across multiple disciplines. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
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
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.