Qt incorporated uses the accrual basis of accounting. qt purchases a piece of equipment on july 1 of the current year for $40,000. if the company expects to use the equipment consistently for four years and depreciation on the equipment is $10,000 per year, how much depreciation expense will qt record in its december 31 financial statements?

The depreciation expense Qt will record in its financial statement is $5,000.

Further Explanation:

Fixed asset:  Fixed asset is an asset that is held in the business for more than a year. Fixed assets are used for the operational process of the business. It includes both tangible and intangible assets. As the assets have a useful life of more than a year then these assets are depreciated on the yearly basis.

Depreciation: It refers to decrease in value of the fixed asset over period of time due to wear, tear and obsolesce of the machinery and equipment. The depreciation is calculated as:

Calculate the depreciation:

Thus, the deprecation expenses are $5,000 at the end of the year.

Calculate the closing value of the asset:

Therefore, the depreciation of $5,000 will be deducted from the net profit and equipment will be recorded at $35,000

Learn more:

1.Learn more about the depreciation expenses

2.Learn more about the overhead expenses

3.Learn more about the fixed and variable expenses

Answer details:

Grade: High School

Subject: Accounting

Chapter: Depreciation

Keywords: QT, the accrual basis of accounting, a piece of equipment, $40,000. the use equipment consistently for four years, depreciation on the equipment is $10,000 per year, depreciation expense, December 31, financial statements.

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i believe the answer is: streets and roads

public property refers to the property that can be used by all legal citizens in a certain country. the public property was created and maintain using the government budget that allocated specifically for it. the budget itself come from the citizen's income tax payment.