During 2017, Carter Company acquired three assets with the following costs, estimated useful lives, and estimated salvage values:

The company uses the straight-line method to depreciate all assets and computes depreciation to the nearest month. For example, the computer system will be depreciated for six months in 2017.
Required
1. Compute the depreciation expense that Carter will record on each of the three assets for
2017.
2. Comment on the following statement: Accountants could save time and money by simply expensing the cost of long-term assets when they are purchased. In addition, this would be more accurate because depreciation requires estimates of useful life and salvage value?

Transcribed Image Text:

Estimated Useful Estimated Salvage Value 3,000 Date March 28 June 22 October 3 Asset Cost Truck $18,000 5 years 10 years 30 years 55,000 Building OouD