Cardco Inc. has an annual accounting period which ends on December 31. During th
ID: 2502375 • Letter: C
Question
Cardco Inc. has an annual accounting period which ends on December 31. During the current year a depreciable asset which cost $42,000 was purchased on September 2. The asset has a $4,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a 5 year life. What is the total depreciation expense for the current year?
$1,900.00
$7,600.00
$2,533.33
$2,800.00
$3,166.67
Cardco Inc. has an annual accounting period which ends on December 31. During the current year a depreciable asset which cost $42,000 was purchased on September 2. The asset has a $4,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a 5 year life. What is the total depreciation expense for the current year?
Explanation / Answer
answer is $2,533.33
1) Figure out total depreciation
2) Divide by 5
3) Figure out how many days in the year they had it for.
4) You should be able to figure it out from here
38000/5= 7600/(120/365) = The answer is A