Question

An asset has an adjusted cost basis of $2,400 with a $600 salvage value at the end of its depreciable life of 8 years. Using straight-line (SL) method, please find the annual depreciation dk. Please only fill in the number of your calculated result in the blank, e.g., if the result is $100, fill in "100"; also round to the nearest integer.

Answer 1

depreciation per year: 225

Step-by-step explanation:

straight-line depreciation: the depreciation expense will be equally distributed over the assets life.

Also, we must remember that we can only depreciate for the difference between the csot adn the salvage value.

The formula for annual depreciation expense is:

`(cost - salvage \: value)/(useful \: life)`

2,400 - 600 = 1,800 amount subject to depreciaiton

1,800 / 8 = 225