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27 December, 14:26

On January 1, 2018, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the straight-line method, the amount of depreciation that should be recorded during 2018, is approximately

$3,000

$10,000

$11,000

$30,000

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  1. 27 December, 14:49
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    The answer is B. $10,000

    Explanation:

    Straight-line depreciation method equals:

    [Historical cost of the asset - salvage value (if any) ] : useful number of years of the asset.

    Historical cost of the asset = $33,000

    Salvage value = $3,000

    Useful life = 3 years

    = ($33,000 - $3,000) : 3 years

    =$10,000

    So the amount of depreciation that will be recorded during 2018 using the straight-line method is $10,000
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