Straight-line depreciation method (Learning Objective 3) 5–10 min.

On January 1, Harry’s Hot Dogs purchased a hot dog stand for $120,000 with an estimated useful life of 10 years and no residual value. Suppose that after using the hot dog stand for four years and straight-line depreciation, the company determines that the stand will remain useful for only four more years. Record Harry’s Hot Dogs’

depreciation expense on the hot dog stand for year 5 by the straight-line method.

AppendixLO1