On May 1, 2013, Bentham Company sells office furniture for $60,000 cash. The office furniture originally...

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On May 1, 2013, Bentham Company sells office furniture for $60,000 cash. The office furniture originally...

On May 1, 2013, Bentham Company sells office furniture for $60,000 cash. The office furniture originally cost $150,000 when purchased on January 1, 2006. Depreciation is recorded by the straight-line method over 10 years with a salvage value of $15,000.

What depreciation expense should be recorded on this asset in 2013?

business accounting

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Answer 1

Answer #1

Depreciation expense

= (Cost - Salvage value) / useful life

= (150,000-15,000)/10 * 4/12

= 4,500

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Answer 2

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