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On june 1, aaron company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours. ? using straight-line depreciation, calculate depreciation expense for the final (partial) year of service.

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meerkat18
Depreciation could be determined in different ways. For straight-line depreciation method, the formula is:  Depreciation = (Cost -Salvage)/Life expectancy

This is called straight-line because the depreciation varies UNIFORMLY with time. If you graph the depreciation with time, it will form a straight line.

Depreciation= (120,000-90,000)/3 years
Depreciation = $10,000 per year

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