On January 1, 2015, Emporia Country Club purchased a new riding mower for $15,000. The mower is

Question:

On January 1, 2015, Emporia Country Club purchased a new riding mower for $15,000. The mower is expected to have an 8-year life with a $3,000 salvage value.

What journal entry would Emporia make at December 31, 2015, if it uses straight-line depreciation?

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...