Depreciation: Straight Line Video Lessons

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Problem: On January 1, 20x5 your company purchased a new piece of equipment for $40,000. You estimate that you will use the equipment for 5 years and then sell it for $10,000. Using the straight-line method, depreciation expense for 20x7 would be: a.    $ 8,000 b.    $ 6,000 c.    $ 5,000 d.    $ 4,000 e.    Some other number

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On January 1, 20x5 your company purchased a new piece of equipment for $40,000. You estimate that you will use the equipment for 5 years and then sell it for $10,000. Using the straight-line method, depreciation expense for 20x7 would be:

a.    $ 8,000

b.    $ 6,000

c.    $ 5,000

d.    $ 4,000

e.    Some other number

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