1) Kansas Enterprises purchased equipment for $76,000 on January 1, 2018. The equipment is expected to have a ten-year life, with a residual value of $7,800 at the end of ten years.

Using the straight-line method, depreciation expense for 2018 would be:

2) A long-term asset is recorded at the:

Cost of the asset.

Additional costs to get the asset ready for use.

Cost of the asset plus all costs necessary to the asset ready for use.

Cost of the asset less all costs necessary to the asset ready for use.

3) Kansas Enterprises purchased equipment for $76,000 on January 1, 2018. The equipment is expected to have a ten-year life, with a residual value of $7,800 at the end of ten years.

Using the straight-line method, depreciation expense for 2018 would be: