Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Ask your questions and receive detailed answers from professionals with extensive experience in various fields. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

using the straight line method. what is the depreciation expense for a computer that costs 4,500, has a residual value of 700, and has a life of 4 years?

Sagot :

So over 4 years, this computer's value will go from 4,500 to 700. 

That's a difference of 3,800 over 4 years. Straight-line means the amount is the same every year, so 

[tex] \frac{3,800}{4} [/tex] = 950

So the depreciation expense each year is 950.