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10. ABC purchased a depreciable asset for $22,000 on March 1, Year 1. The asset will be depreciated using the straight-l...

10. ABC purchased a depreciable asset for $22,000 on March 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the assets's residual value is $2,000, ABC should recognize depreciation expense in Year 2 in the amount of:

A. $19,166.67

B. $5,000.00

C. $5,500.00

D. $20,000.00

E. $4,166.67

(explain your answer please)

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Answer #1

Depreciation expense = (Cost - Salvage value) /Useful life

= (22,000 - 2,000)/4 years

= (20,000)/4

= 5,000

Option B is the answer

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