Diamonds & Pearls Mining Company purchased new drilling equipment for $800,000. The useful life of this equipment is estimated at 15 years and the scrap value of US$50,000. Diamonds & Pearls expects this equipment to be able to drill 600,000 feet of rock. The equipment was purchased on January 1, 2018, and the company's fiscal year-end is December 31.

What is the depreciation expense for 2018, using the linear depreciation method?

Answer rating: 100% (QA)

Using the linear depreciation method the annual depreciation expe... View the full answer