Item6

Item 6

Speedbag, Incorporated purchased equipment at a cost of $60,000 on July 1, 2023. The expected useful life is 4 years and the asset is expected to have salvage value of $10,000. Speedbag depreciates its assets using the straight-line method.

What is the company's depreciation expense for the year ended December 31, 2023?

Multiple Choice

a. $6,250

b. $7,500

c. $12,500

d. $15,000