Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years. Using the straight-line method, depreciation expense for 2018 would be: $12,000.

$11,000.

$60,000.

None of these.

Question

Giana Bradley

Business

22 March, 05:10

Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years. Using the straight-line method, depreciation expense for 2018 would be: $12,000.

$11,000.

$60,000.

None of these.

+2

Answers (1)

Know the Answer?

Nasir Booth · Answer 1

The correct answer is B: $11,000

Explanation:

Giving the following information:

January 1, 2018:

purchase price=$60,000.

The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years.

Depreciation = (purchase price - residual value) / useful life

Annual Depreciation = (60000 - 5000) / 5 = 11000

Depreciation year 2018 = $11,000

Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years. Using the straight-line method, depreciation expense for 2018 would be: $12,000.$11,000.$60,000.None of these.

Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years. Using the straight-line method, depreciation expense for 2018 would be: $12,000.

$11,000.

$60,000.

None of these.