Question

The formula for computing annual straight line depreciation is

Answer 1

Pensive calculates the annual straight-line depreciation for the machine as: Purchase cost of $60,000 – estimatedsalvage value of $10,000 = Depreciable asset cost of $50,000. 1 / 5-year useful life = 20% depreciation rate per year.

Answer 2

pensive calculates the annual straight line description for the machine cost as