Question

In 2017, Wagner Industries purchased a piece of equipment with an estimated useful life of 10 years. Each year, Wagner expenses 1/10 of the equipment’s cost. This is an example of A : depreciation. B : goodwill. C : unethical accounting practices. D : an operating cycle

Answer 1

This is an example of A : depreciation

Step-by-step explanation:

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value.