G Mitchell Corporation bought equipment on January 1, 2022. The equipment cost $120,000 and had an expected salvage value of $20,000. The life of the equipment was estimated to be 6 years. Straight-line depreciation was used. The depreciation expense each year is:

depreciation expense = $100,000

Explanation:

given data

equipment asset cost = $120,000

salvage value =  $20,000

solution

we get here depreciation expense that is calculated by  the subtracting of salvage value from original cost of the asset

so that is express as

depreciation expense =  asset cost - salvage value 1

put here value and we get

depreciation expense =  $120,000 - $20,000

depreciation expense = $100,000

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