Cutter enterprises purchased equipment for $72,000 on january 1, 2010. the equipment is expected to have a five-year life, with a residual value of $6,000 at the end of five years. using the straight-line method, depreciation expense for 2011 and the book value at december 31, 2011 would be:

The depreciation expense for 2011 = $13,200

The Book value on December 31, 2011 = $45,600

Explanation:

Data provided in the question:

Cost of the equipment purchased = $72,000

Residual value = $6,000

Useful life = 5 years

now,

Using the straight-line method of depreciation

The annual depreciation = ( Cost - residual value ) ÷ ( Useful life )

= ( $72,000 - $6,000 ) ÷ 5

= $13,200

Therefore,

The depreciation expense for 2011 = Annual depreciation

= $13,200

Now,

accumulated depreciation on December 31, 2011

= Annual depreciation × Number of years passed

= $13,200 × 2

= $26,400

Therefore,

The Book value on December 31, 2011

= Purchasing cost - accumulated depreciation

= $72,000 - $26,400

= $45,600

the correct answer is d. wealthy colonists to take care of the less fortunate. hope this

the correct answer is b.)