On January 1, year 1, Glasser Corp. purchased equipment for $120,000. The equipment has a useful life of 3 years, and a residual value of $20,000. Using the sum-of-the-years'-digits method, what is the depreciation expense for year 1?

Depreciation expense= $17,000

Explanation:

Giving the following information:

Purchase price= $120,000

Useful life= 3 years

Residual value= $20,000

To calculate the depreciation expense under the sum-of-the-years'-digits, we need to use the following formula:

Depreciation expense= book value*(remaining useful life / sum of the years

Sum of the years= 1 + 2 + 3= 6

Depreciation expense= (120,000 - 20,000) * (1/6)

Depreciation expense= 100,000*0.17

Depreciation expense= $17,000

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this

answer; commerce clearing house;