Windsor hospital purchases $90,000 in surgical equipment on october 1, year 1. the useful life is estimated to be 5 years, and the residual value is estimated to be $10,000. what will be the depreciation expense reported for this equipment in year 1 if the hospital uses the straight-line method?

The depreciation expense for year 1 is $16,000

Explanation:

Depreciation: The depreciation was occurred due to tear and wear, obsolesce, time period, etc

Under the straight-line method, the depreciation should be charged with the same amount over the useful life.

The calculation is shown below:

=

=

= $16,000

The depreciation should be charged for $16,000 in year 1. Moreover, it is shown in the income statement in the debit side and in the cash flow statement also.

answer; closing the loop;

answermarginal cost;