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On February 28, 2017 Concord pet care clinic purchased a copy machine for 55200 Concord pet...

On February 28, 2017 Concord pet care clinic purchased a copy machine for 55200 Concord pet care clinic expects the machine to last for 6 years and to have a residential value of 3000 compute depreciation expenses on the machine for the year ended December 31st 2017 use the straight line method

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Answer #1

Solution

Depreciation expense as per straight line method

Formula:

Depreciation expense:

Cost of asset- Residual value Estimated life of asset

(55200-3000)/6 =8700

8700 is the depreciation for full year but since the I'm 2017 the copy machine is used only for 10 months i.e. from March to December so the depreciation expense for 2017 will be: 8700×(10/12)= 7250.

Thus the depreciation expense for December 2017 will be 7250.

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