In anticipation of Digby Corporation's new product, Dash, the company will purchase new plant and equipment for $12,750,000. The plant and equipment is expected to be used for 15 years and has a planned salvage value of $0. Assuming straight-line depreciation, how much will Digby expense in depreciation next year (and only next year) for the new equipment?

Answer rating: 100% (QA)

To calculate the depreciation expense for the new plant and equipment next year we ... View the full answer