Wayne Co. purchased $40,000 of equipment with a savage value of $5000 and a useful life...
Wayne Co. purchased $40,000 of equipment with a savage value of $5000 and a useful life of nine years on August 15, 2016. If the company used sum-of-the-years'-digits depreciation computed to the nearest whole year, depreciation expense for 2017 was
a. $8000
b. $7111
c. $7000
Homework Answers
Sum of digit = 9+8+7+6+5+4+3+2+1 = 45
Depreciation expense for 2017 = (4000-5000)*9/45
= $7000
Option c is correct answer.
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