A company purchased factory equipment on April 1, 2013 for $80,000. It is estimated that the equipment will have an $10,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2013 is A. $5,250. B. $8,000. C. $7,000. D. $6,000.

A.$5,250

Explanation:

=(80,000-10,000)/10=7,000*9/12=$5,250

The depreciation have been worked out on pro rata basis for 9 months starting from April 1st to 31 December 2013.

A.$5,250

Explanation:

=(80,000-10,000)/10=7,000*9/12=$5,250

The depreciation for 9 months starting from April 1st to 31 December 2013.recoded as depreciation expense $5,250

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