Question

If a piece of equipment costs $110,000 and has a 10-year useful life along with a $10,000 salvage value, what is the annual depreciation expense using

Answer 1

ans .. must be 10000


working note ...


cost - salvage value
$cost - salvage value \div usefull \: life = deprecation$
therefore
$110000 - 10000 \div 10 = 10000$
and 10000 is the depreciation for the year