On September 1, 2010, Dulzura Company purchased an asset for $9,000, with a $1,500 estimated salvage value, and a 4-year useful life

Accounting Mar 18, 2021

On September 1, 2010, Dulzura Company purchased an asset for $9,000, with a $1,500 estimated salvage value, and a 4-year useful life. The 2010 depreciation expense using the straight-line method would be:

a. $625.

b. $2,250.

c. $750.

d. $1,875.

Expert Solution

Answer:

d .

Step-by-Step explanation

Depreciation expense = (Cost - Salvage value) / Estimated useful life

= ($9,000 - $1,500) / 4 years

= $7,500 / 4 years

= $1,875

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