Emir company purchased equipment that cost $110,000 cash on january 1, year 1. the equipment had an expected useful life of six years and an estimated salvage value of $8,000. emir depreciates its assets under the straight-line method. what are the amounts of depreciation expense during year 3 and the accumulated depreciation at december 31, year 3, respectively?

Explanation:

Straight line depreciation on a fixed asset like a company equipment is a method used to assign an equal amount of depreciation expense per year.

The formula is below;

Depreciation per year = (Cost - Salvage value)/ useful life

= (110,000 - 8,000)/6

= 102,000 / 6

Depreciation = $17,000 per year

Therefore, depreciation expense during year 3 would be $17,000 and accumulated depreciation at the end of year 3 is the addition of all the depreciation expenses for the first three years;

Accumulated depreciation = $17,000 + $17,000 + $17,000 = $51,000

the answer is a.

by: nicholas dooley

answer///supply is elastic, and demand is inelastic;