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On April 30, 2017, Tilton Products purchased machinery for $44,000. The useful life of this machinery is estimated at 8 years, with an $4,000 residual
On April 30, 2017, Tilton Products purchased machinery for $44,000. The useful life of this machinery is estimated at 8 years, with an $4,000 residual value.
Assume that in its financial statements, Tilton Products uses straight-line depreciation and rounds depreciation for fractional years to the nearest month. Depreciation expense recognized on this machinery in 2017 and 2018 will be:
$3,333 in 2017 and $5,000 in 2018.
$2,667 in 2017 and $5,000 in 2018.
$5,000 in 2017 and $5,000 in 2018.
$2,000 in 2017 and $5,000 in 2018.
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