Answer:
Chele expense in depreciation next year will be $1,626,666.67
Explanation:
Chester Corporation uses the straight-line method of depreciation, Depreciation Expense each year is calculated by following formula:
Annual Depreciation Expense = (Cost of the asset − Salvage Value )/Useful Life
The asset (plant and equipment) have cost of $24,400,000 and salvage value of $0
The plant and equipment is expected to be used for 15 years.
Annual Depreciation Expense = ($24,400,000 - $0)/15 = $1,626,666.67
Chele expense in depreciation next year will be $1,626,666.67
