A building was purchased on August 1 for $450,000. It has a salvage value of $41,000 and a useful life of 30 years. To the nearest dollar, how much will the depreciation expense for the building be for the first year ended December 31, using the straight-line method? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
A) $13,633
B) $15,000
C) $5,681
D) $6,250
C) $5,681
Explanation: (price - salvage value)/useful life = annual depreciation, depreciation × partial year = year one expense.
Ex: ($450,000 - $41,000) / 30 = $13,633.33 × 5/12 = $5,681
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