Question: 1. Togo's Sandwiches acquired equipment on April 1, 2012, for $13,000. The company estimates a residual value of $1,000 and a five-year service life.
Required: Calculate depreciation expense using the straight-line method for 2012 and 2013, assuming a December 31 year-end.
2. Tasty Subs acquired a delivery truck on October 1, 2012, for $16,500. The company estimates a residual value of $1,500 and a six-year service life.
Required: Calculate depreciation expense using the straight-line method for 2012 and 2013, assuming a December 31 year-end.