Answer:
depreciation expense for the month = $7700
so correct option is c. $7,700
Explanation:
given data
cost = $390,000
residual value = $60,000
useful life = 30,000 hours
equipment operated = 700 hours
to find out
amount should be recorded as depreciation expense for the month
solution
we get here first Annual depreciation expense that is express here as
Annual depreciation expense = ( Cost - Residual value ) ÷ Useful Life ..................1
put here value we get
Annual depreciation expense = [tex]\frac{390000-60000}{30000}[/tex]
Annual depreciation expense = $11 per hour
so
depreciation expense for the month will be
depreciation expense for the month = Annual depreciation expense × equipment operated .....................2
depreciation expense for the month = $11 × 700
depreciation expense for the month = $7700
so correct option is c. $7,700
