Phillips tool and did company bought $72,000 of equipment with an estimated serv

Question

Phillips tool and did company bought $72,000 of equipment with an estimated service life of 4 years. The equipment will be worthless at the end of its life. The annual amount of straight-line depreciation on this equipment is: A: $18,000 B: $36,000 C: $72,000 Question 12 (of 16 Submit 15.00 points Phillips Tool and Die Company bought $72,000 of equipment with an estimoted service life of 4 years The equipment will be worthliess at the end of ins life. The annual amount of ser ?$18,000 O $36.000 O $72.000 O so Type here to search

Explanation / Answer

Straight line depreciation expense = (Original cost-Salvage value)/Useful life

= (72000-0)/4

Straight line depreciation expense = 18000

So answer is a) $18000

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