Larry has booked a hotel room for a conference at a rate of $100 per day for five days. when he arrives to check in, larry is told that the hotel was overbooked and it cannot supply him with a room. larry is forced to go to the only hotel in town with available rooms and pay $150 per night. if larry sues the original hotel for damages and wins
El tapitio purchased restaurant furniture on september 1, 2018, for $45,000. residual value at the end of an estimated 10-year service life is expected to be $6,000. calculate depreciation expense for 2018 and 2019, using the straight-line method, and assuming a december 31 year-end.
The depreciation expense for 2018 and 2019 using the straight-line method is $3,900.
Explanation:To calculate the depreciation expense for 2018 and 2019 using the straight-line method, we need to determine the annual depreciation amount. The formula for straight-line depreciation is:
Depreciation Expense = (Cost of the Asset - Residual Value) / Useful Life
In this case, the cost of the furniture is $45,000, the residual value at the end of the 10-year service life is $6,000, and the useful life is 10 years. Plugging in these values, we can calculate the annual depreciation expense:
Depreciation Expense = ($45,000 - $6,000) / 10 = $3,900
Therefore, the depreciation expense for 2018 and 2019 is both $3,900.
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