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)
Depreciation expense = (Cost - Salvage value) /Useful life
= (22,000 - 2,000)/4 years
= (20,000)/4
= 5,000
Option B is the answer
10. ABC purchased a depreciable asset for $22,000 on March 1, Year 1. The asset will be depreciated using the straight-l...
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