Answer :
Answer:
The amount of depreciation expense for the year is $400
Explanation:
The amount of depreciation expense for the year using the Straight Line Method (SLM) as:
Depreciation expense = Asset cost - Salvage value / Number of years of useful life × Portion of year that will be expensed
where
Assets cost is $10,000
Salvage value is $2,000
Number of years of useful life is 5 years
Portion of year that will be expensed is 3 months / 12 (For 3 months from October to December)
Putting the values above:
Depreciation expense = $10,000 - $2,000 / 5 × 3/12
= $8,000 / 5 × 3/12
= $1,600 × 3/12
= $400
Therefore, the amount of depreciation expense for the year using the Straight Line Method (SLM) amounts to $400