QUESTION 9

1. On August 1, Warren Company placed into service equipment with a capitalized cost of $40,809. The equipment was paid for by issuing a 90 day 6% Note Payable. Based on industry standards, the equipment is expected to have a useful life of 7 years, at which time it will have an estimated worth of $3,921. The equipment will be depreciated using the Straight Line method.

   Based on these transactions alone, what is the Depreciation Expense on the equipment on August 31?