7 On April 30, 2017, Tilton Products purchased machinery for $88,000. The useful

Question

7 On April 30, 2017, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $4,000 residual value. 3.33 points Assume that in its financial statements, Tilton Products uses straight-line depreciation and rounds depreciation for fractional years to the nearest month. Depreciation expense recognized on this machinery in 2017 and 2018 will be: Print Multiple Choice $7,000 in 2017 and $10,500 in 2018. $2,000 in 2017 and $10,500 in 2018. $10,500 in 2017 and $10,500 in 2018. $2,667 in 2017 and $10,500 in 2018

Explanation / Answer

Depreciation expense per year=(Cost-Residual value)/Useful life

=(88000-4000)/8=$10500

Hence Depreciation expense for :

2017=(10500*8/12)=$7000

2018=$10500

Hence the correct option is A.

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.