Depreciation Expense During 2010, Carter Company acquired three assets with the following costs, estimated useful lives, and estimated salvage values:

Estimated Estimated Date Asset Cost Useful Life Salvage Value March 28 Truck $ 18,000 5 years $ 3,000 June 22 Computer 55,000 10 years 5,000 October 3 Building 250,000 30 years 10,000 The company uses the straight-line method to depreciate all assets and computes depreciation to the nearest month. For example, the computer system will be depreciated for six months in 2010.

Required 1. Compute the depreciation expense that Carter will record on each of the three assets for 2010.

2. Comment on the following statement: Accountants could save time and money by simply expensing the cost of long-term assets when they are purchased. In addition, this would be more accurate because depreciation requires estimates of useful life and salvage value.

AppendixLO1