An insurance office purchased office furniture costing $9,600 and put it into use on April 1. The furniture is expected to have a useful life of 10 years and an estimated resale value of $600. Using the straight-line method of depreciation, compute the depreciation expense for April 1 through December 31 of the first year and all 12 months of the second year.

Straight-Line Method

A depreciation method that allocates an equal amount of an asset's cost to each year of its useful life.

Resale Value

The estimated market value of an asset if sold again; often used in reference to vehicles, electronics, and real estate.

Office Furniture

Equipment and accessories designed for use in a workplace setting, including desks, chairs, and filing cabinets.