Question

At the beginning of Year 1, Mitchell Company purchased office equipment for $15,000. The machine has an estimated residual value of $1,000 and an estimated service life of 5 years. If Mitchell uses straight-line depreciation, it will make which of the following entries related to depreciation at the end of Year 1?

Answer 1

Debit the depreciation expense for $2800

Step-by-step explanation:

Straight line depreciation expense = (cost of asset - Salvage value) / useful life

($15,000 - $1,000) / 5 = $2,800

I hope my answer helps you