Jerry Holiday is the maintenance supervisor for Ray's Insurance Co. and has recently purchased a riding lawn mower and accessories that will be used in caring for the grounds around corporate headquarters. He sent the following information to the accounting department:

Calculate the amount of depreciation expense (for the mower and accessories) that should be reported on Ray's Insurance Co.'s December 31, 2014 income statement. Assume straight-line depreciation.

Transcribed Image Text:

Cost of mower and accessories $9,600 Estimated useful life Date purchased Monthly salary of groundskeeper Estimated annual fuel cost July 1, 2014 $1,100 $150 8 years