The Merrick Company bought store equipment on July 3rd of the current year at a cost of $4,800. The store equipment has an estimated useful life of six (6) years and an estimated disposal value of $600.

The first year annual depreciation expense if you used the straight line method of the machine should be
$ 700
$ 800
$ 350
$ 400

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Depreciation is a method of accounting for deducting the operating expenses of a tangible or physical asset over its usable life or expected life. Depreciation is a term used to describe what kind of asset class equity will be used.

Calculation of the annual depreciation.

Below is the given data:

Cost of the asset: $4800

Disposal value: $600

No. of years: 6

[tex]\begin{aligned}\text{Depreciation} &= \frac{\text{cost of the asset - disposal value}}{\text{No. of years}} \\=&\frac{\$4800-\$600}{6}\\ =&\$700\end{aligned}[/tex]

Therefore the correct option is $ 700.

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During an American election campaign, a candidate is least likely to__?

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False

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