on january 1, a company purchased new furniture at a cost of $14,000. the furniture is estimated to have a…

on january 1, a company purchased new furniture at a cost of $14,000. the furniture is estimated to have a useful life of 8 years and a salvage value of $2,000. the company uses the straight - line method of depreciation. how much depreciation for the furniture for the first year ended december 31? multiple choice $437 $375 $1,500 $500 $1,750

on january 1, a company purchased new furniture at a cost of $14,000. the furniture is estimated to have a useful life of 8 years and a salvage value of $2,000. the company uses the straight - line method of depreciation. how much depreciation for the furniture for the first year ended december 31? multiple choice $437 $375 $1,500 $500 $1,750

Answer

Explanation:

Step1: Determine depreciable cost

Depreciable cost = Cost - Salvage value. Here, cost = $14000 and salvage value = $2000. So, depreciable cost = $14000 - $2000=$12000.

Step2: Calculate annual depreciation

Annual depreciation = Depreciable cost / Useful - life. Useful - life = 8 years. So, annual depreciation = $\frac{12000}{8}=1500$.

Answer:

$1500