Question

this makes no sence

Required information [The following information applies to the questions displayed below.) On April 1, Cyclone's Co. purchases a trencher for $298,000. The machine is expected to last five years and have a salvage value of $49,000. Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. Choose Numerator: 1 Choose Denominator: = = = Annual Depreciation Annual depreciation 0 Depreciation Expense Year Annual Depreciation X Fraction of Year First year Second year

Answer 1

Choose Numerator / Choose Denominator Cost minus salvage value Estimated useful life (years) 249,000 Year Annual depreciation x Fraction of Year First Years 49,800 X Second Year S 49.800 x 12/12 = Annual depreciation = Annual depreciation 51= S 49.800 =Depreciation Expense = $ $ 37,350 = $ 49.800 9/12 Notes: Cost minus salvage value = $298,000-$49,000 = $249,000 April to december = 9 Months