Question

Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of:

A) $10,000

B) $5,000

C) $5,500

D) $20,000

E) $9,250

Answer 1

Depreciation expense in the year 2 B $ 5,000 Depreciation expense Cost of Asset Less : Salvage value Depreciable cost of asset Useful life of asset $ 22,000 $ 2,000) $ 20,000 4 years Depreciation for each year = Depreciable cost of asset/Useful life of asset $ 20000 / 4 $ 5,000

Answer 2

[REMOVED]