Question

Calculate the depreciation in straight line method

Answer 1

Answer:

The straight line depreciation for the machine would be calculated as follows:

1. The straight line depreciation for the machine would be calculated as follows:Cost of the asset: $100,000.
2. The straight line depreciation for the machine would be calculated as follows:Cost of the asset: $100,000.Cost of the asset – Estimated salvage value $100,000 – $20,000 = $80,000 total depreciable cost.
3. $100,000 – $20,000 = $80,000 total depreciable cost.Useful life of the asset: 5 years.
4. $100,000 – $20,000 = $80,000 total depreciable cost.Useful life of the asset: 5 years.Divide step (2) by step (3): $80,000 / 5 years = $16,000 annual depreciation amount

Hope its help uh❤