Homework Answers
Under the straight line method, depreciation is calculated by the following formula:
Depreciation = Cost - Residual value / Useful life
Cost = $16700, Salvage value = $1400, useful life = 10
Depreciation = ($16700 - $1400) / 10 = $1530
Under straight line method, depreciation remains the same for every year.
Required journal entry is:
| Date | Account titles | Debit | Credit |
| December 31, 2017 | Depreciation expense | $1530 | |
| Accumulated depreciation | $1530 | ||
| (for current years' depreciation) |
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