Company purchased equipment on January 1, 2017 for $ 600 comma 000. The residual value is $ 60 comma 000 and the estimated useful life is 10 years. What is the Depreciation Expense for the year ending December 31, 2017, if the company uses the straight-line method?

For computation of Depreciation Expense for the year ending 31 Dec first we need to compute the depreciation under straight line method for the year which is shown below:-

Depreciation under straight line method for the year = (Cost - Residual value) ÷ Estimated useful life

= ($600,000 - $60,000) ÷ 10

= $540,000 ÷ 10

= $54,000

Depreciation expenses = (Depreciation under straight line method for the year ÷ 12) × From Jan 1 to Dec 31

= ($54,000 ÷ 12) × 12

= $4,500 × 12

= $54,000

Company purchased equipment on January​ 1, 2017 for $ 600 comma 000. The residual value is $ 60 comma 000 and the estimated useful life is 10 years. What is the Depreciation Expense for the year ending December​ 31, 2017, if the company uses the​ straight-line method?

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Company purchased equipment on January 1, 2017 for $ 600 comma 000. The residual value is $ 60 comma 000 and the estimated useful life is 10 years. What is the Depreciation Expense for the year ending December 31, 2017, if the company uses the straight-line method?