Acompany purchased factory equipment on june 1, 2013, for $80,000. it is estimated that the equipment will have a $5,000 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

$4375

Explanation:

Firstly, we solve for the depreciable asset cost = 80000 - 5000

= 75000

The total life span is 10 years and there are 120 months in 10 year. June 1 to December 31 represents 7 months.

Thus the depreciation from June 1 to December 31 = (7/120) × 75000

= $4375

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