On January 1, the Matthews Band pays $65,600 for sound equipment. The band estimates it will use this equipment for five years
and perform 200 concerts. It estimates that after five years it can sell the equipment for $2,000. During the first year, the band
performs 45 concerts.
Compute the first-year depreciation using the straight-line method.
Choose Numerator: / Choose Denominator: = Annual Depreciation
Cost minus salvage / Estimated useful life (years) = Depreciation expense
$ 63,600 / 5 = $ 12,720
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