Problema Solution
An asset cost $33,000. It has an expected useful life of 5 years and an expected salvage value of $3,000. Depreciation expense for the first year of the asset's life using the straight-line method.
Answer provided by our tutors
The formula to calculate the straight-line depreciation of an asset for a full accounting period is:
Depreciation = (Cost − Salvage Value) / Life in Number of Periods
Depreciation = (33,000 - 3,000)/5
Depreciation = $6,000
Depreciation expense for the first year of the asset's life using the straight-line method is $6,000.