Bricker enterprises purchased a machine for $207,000 on october 1, 2018. the estimated service life is ten years with a $20,500 residual value. bricker records partial-year depreciation based on the number of months in service. depreciation expense for the year ended december 31, 2018, using straight-line depreciation, is (do not round your intermediate calculations. round your answer to the nearest dollar amount) :

Question

Mohammed James

Business

7 May, 21:39

Bricker enterprises purchased a machine for $207,000 on october 1, 2018. the estimated service life is ten years with a $20,500 residual value. bricker records partial-year depreciation based on the number of months in service. depreciation expense for the year ended december 31, 2018, using straight-line depreciation, is (do not round your intermediate calculations. round your answer to the nearest dollar amount) :

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Marcos Olson · Answer 1

Straight Line Depreciation per year = (Total Value of the asset-Residual Value) / No of years of useful life

= (207000-20500) / 10

=$18650

Depreciation in 2018 = 3 months (Oct, 18 to Dec, 18)

Depreciation for 3 months = $18650/12*3

=$4663