g Mitchell Corporation bought equipment on January 1, 2022. The equipment cost $120,000 and had an expected salvage value of $20,000. The life of the equipment was estimated to be 6 years. Straight-line depreciation was used. The depreciation expense each year is:

depreciation expense = $100,000

Explanation:

given data

equipment asset cost = $120,000

salvage value = $20,000

solution

we get here depreciation expense that is calculated by the subtracting of salvage value from original cost of the asset

so that is express as

depreciation expense = asset cost - salvage value ... 1

put here value and we get

depreciation expense = $120,000 - $20,000

depreciation expense = $100,000