Question

Use the information below to answer the questions that follow. Enter your answers using digits only - no dollar signs, commas, or decimal points. The business's year-end is December 31.
Cost of equipment = 269000
Useful life in years = 8
Residual value = 5000
Date purchased = November 1
What is the depreciation expense per year

Answer 1

Depreciation per year by SLM: = (Original Cost - Salvage value )/Estimated life
=(269000- 5000)/8
33000	(Depreciation expense per year
33000 is the depreciation for the whole year and as the equipment purchased on Nov 1 then depreciation for only 2 months (Nov and Dec) is to be taken
Depreciation for first year would be = 33000/12*2
5500