Chapter 9, Problem 9.8E

To determine

Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset. The formula to calculate the depreciation cost of the asset using the salvage value is shown as below:

$\text{Depreciation cost = }\frac{\left(\text{Cost of the asset-Salvage value}\right)}{\text{Estimated useful life of the asset}}$

To record: the journal entry for the required dates.