a construction company purchased a new bulldozer for $99,000 on january 1, 2025. the company estimates that…

a construction company purchased a new bulldozer for $99,000 on january 1, 2025. the company estimates that the bulldozer will have a useful life of nine years and then be worthless. using the straight - line depreciation method, yearly depreciation expense will be:\n\na. $0.\nb. $99,000.\nc. $49,500.\nd. $11,000.

a construction company purchased a new bulldozer for $99,000 on january 1, 2025. the company estimates that the bulldozer will have a useful life of nine years and then be worthless. using the straight - line depreciation method, yearly depreciation expense will be:\n\na. $0.\nb. $99,000.\nc. $49,500.\nd. $11,000.

Answer

Explanation:

Step1: Determine the formula for straight - line depreciation

The formula for straight - line depreciation is $Depreciation\ Expense=\frac{Cost - Salvage\ Value}{Useful\ Life}$.

Step2: Identify the values

The cost of the bulldozer is $C = 99000$, the salvage value is $S=0$ (since it will be worthless), and the useful life is $n = 9$ years.

Step3: Calculate the depreciation expense

Substitute the values into the formula: $Depreciation\ Expense=\frac{99000 - 0}{9}$. $$Depreciation\ Expense=\frac{99000}{9}=11000$$

Answer:

D. $11,000