On June 30, 2018, Clooney Printers purchased a printer for $60,000. It expects the printer to last for four years and have a residual value of $9000. Compute the depreciation expense on the printer for the year ended December 31, 2018, using the straight-line method. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A) $12,750
B) $6375
C) $15,000
D) $7438
B) $6375
Explanation: Depreciation per year = (Cost - Residual value) / Useful life
Depreciation for the first year = (($60,000 - $9000) / 4) × (6 /12) = $6375
Business
You might also like to view...
Acquisition cost is also referred to as: ________________
Fill in the blank(s) with correct word
Business
If factory overhead applied exceeds the actual costs, overhead is said to be underapplied
Indicate whether the statement is true or false
Business
What are some arguments against the XP technique of pair programming?
What will be an ideal response?
Business
A data sample has a mean of 107, a median of 122, and a mode of 134 . The distribution of the data is positively skewed
Indicate whether the statement is true or false
Business