Answer:
The depreciation expense on the printer for the year ended december 31, 2016 was $7,375
Explanation:
Colora Printers uses the straight-line method of depreciation, Depreciation Expense each year is calculated by following formula:
Annual Depreciation Expense = (Cost of the printer − Residual Value)/Useful Life = ($69,000 - $10,000)/4 = $59,000/4 = $14,750
In 2016, the printer was used from June 30 to December 31 (6 months - half-year).
Depreciation Expense for 2016 = ($14,750/12) x 6 = $7,375
