question 5 (mandatory) (1 point) listen an asset having a four - year service life and a salvage value of…

question 5 (mandatory) (1 point) listen an asset having a four - year service life and a salvage value of $5,000 was acquired for $45,000 cash on april 5. using straight - line depreciation, what will be the depreciation expense at the end of the first year, december 31? $10,000 $22,500 $ 5,000 $11,250 none of the above

question 5 (mandatory) (1 point) listen an asset having a four - year service life and a salvage value of $5,000 was acquired for $45,000 cash on april 5. using straight - line depreciation, what will be the depreciation expense at the end of the first year, december 31? $10,000 $22,500 $ 5,000 $11,250 none of the above

Answer

Answer:

$7,500$

Explanation:

Step1: Calculate annual depreciation

Annual Depreciation = $\frac{Cost - Salvage\ Value}{Useful\ Life}$ Annual Depreciation = $\frac{45000 - 5000}{4}=\frac{40000}{4}=10000$

Step2: Determine number of months in first - year

The asset was acquired on April 5. From April 5 to December 31, the number of months $n = 9$ months.

Step3: Calculate first - year depreciation

First - year depreciation = $\frac{Annual\ Depreciation}{12}\times n$ First - year depreciation = $\frac{10000}{12}\times9 = 7500$