Required information Use the following information for the Exercises below. The

Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below.] On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $296,000. The machine is expected to last five years and have a salvage value of $48,000. Exercise 10-11 Straight-line, partial-year depreciation LO C2 Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the straight-line method Choose Numerator:I Choose Denominator: Annual Depreciation Annual depreciation Depreciation Expense Year Annual Depreciation x 2016 2017 Fraction of Year

Explanation / Answer

Note :

Fraction of Year for 2016 =

April 1,2016 to December 31,2016 = 9 Months

Fraction of Year for 2017 =

January 1,2017 to December 31,2017 = 12 Months

Choose Numerator / Choose Denominator = Annual Depreciation Expense (Cost - Salvage Value) / Useful Life = Depreciation Expense ( 296,000- 48,000) / 5 = 49,600

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