Answer:
a.$50,400
b. 20% depreciation per year
c. $10,080 per year
Step-by-step explanation:
a) The depreciable cost is the total purchase cost minus the residual value:
b) The straight -line rate is the rate of depreciation per year. Since here the usefull life is 5 year, the depreciation rate is 1/5 per year =0.2 per year
= 20 % per year
c) The annual straight-line depreciation is the depreciable cost multiply by the depreciation rate:
Annual straight-line depreciation= 0.2*50,400= $10,080