Peavey Enterprises purchased a depreciable asset for $24,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life.

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Topic: Accounting Posted 2 months ago

Peavey Enterprises purchased a depreciable asset for $24,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life.

Peavey Enterprises purchased a depreciable asset for $24,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,500, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of.

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Koala Tutor

Oct 4, 2024

Koala Ai Support

$5,500.

The calculation is as follows:

First, subtract the salvage value from the cost of the asset: $24,500 - $2,500 = $22,000.

Then, divide this amount by the useful life of the asset: $22,000 / 4 years = $5,500 per year.

So, Peavey Enterprises should recognize a depreciation expense of $5,500 in Year 2.

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