Question

give the formula for calculating annual depreciation under original cost method​

Answer 1

he 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.

Useful life of the asset: 5 years.

Divide step (2) by step (3): $80,000 / 5 years = $16,000 annual depreciation amount.