Jens CO. purchases of plant and equipment items were as follows and records depreciation using the nearest whole month method:

nearest whole month method:

Plant and Equipment Breakdown

Date of Purchase	Plant and Equipment Item	Cost	Estimated Useful Life	Residual Value
Dec 1, 2019	Furniture	$36,000	3 years	$0
Mar. 1, 2020	Equipment	187,000	10 years	25,000
Nov. 1, 2020	Building	491,000	15 years	131,000

The depreciation recorded in 2020 for Furniture, using the Straight-Line method, would be 1,000.

Formula for Straight-Line = Cost - Residual Value/Estimated Useful Life

Is this true or false?

1 True

2False