Answer:
$1,333
Explanation:
The computation of the deprecation expense is shown below:
= (Original cost - residual value) ÷ estimated useful life
= ($23,000 - $3,000) ÷ 5 years
= $4,000
This $4,000 depreciation expense come for a year but the asset is purchased on September 1, 2019 and the books are closed on December 31, 2019
So, the four months depreciation expense would be
= Yearly depreciation expense × number of months ÷ (total number of months in a year)
= $4,000 × (4 months ÷ 12 months)
= $1,333.33
The four months is calculated from September 1 to December 31
