Partial year depreciation example

On September 1, year 1, WallE buys new equipment from Buy-N-Large for $10,000. The estimated useful life is 5 years and the residual value is $2,000. Assume WallE uses the S/L Depreciation Method.

Calculate the:

depreciation expense to be recorded at the end of year 1 & 2

accumulated depreciation balance at the end of year 1 & 2

net book value at the end of year 1 & 2