Use the straight line amortization method. Equipment amortizes 20 percent per year. Trial Balance for March 31, 2005 shows equipment worth $90,030.
To use the straight-line amortization method, you need to divide the cost of the equipment by its estimated useful life. In this case, the equipment amortizes 20 percent per year, so its useful life would be 100 percent divided by 20 percent, which is 5 years.
To calculate the annual amortization expense, you would divide the cost of the equipment by its useful life.
Annual amortization expense = Cost of equipment / Useful life
In this case, the cost of the equipment is given as $90,030. Therefore, the annual amortization expense would be:
Annual amortization expense = $90,030 / 5 = $18,006
So, the annual amortization expense for the equipment would be $18,006.
Please note that the term "trial balance" usually refers to a list of account balances at a specific date, so it's not clear how the equipment's worth is represented in the trial balance. However, if the equipment's worth is listed separately in the trial balance, you can calculate the amortization expense as explained above.