Jay Hawk, maintenance supervisor for Boston Insurance Co, has purchased a riding lawnmower and accessories to be used in maintaining the grounds around corporate headquarters. He has sent the following information to the accounting department.
Cost of mower and accessories ............... $4,000
Estimated useful life .............................. 5 yrs
Salvage value ........................................ $0
Date purchased ........................................ 7/1/10
Monthly salary of groundskeeper ........ $1,100
Estimated annual fuel cost ................. $150
Compute the amount of depreciation expense (related the mower and accessories) that should be reported on Boston