Answer:
1721 $
1612.80
Explanation:
Straight line depreciation means depreciation is the same spread over for all the years. The spread over amount is nothing but total cost of equipment - salvage value.
Here we have
Cost of equipment(Purchase cost) ... 18000
Shipping costs ... 620
Installation costs ... 590
Total cost of equipment ... 19210
Less: salvage value at the end ... 2000
Net cost of equipment for 10 years ... 17210
Depreciation per year = Net cost /number of years of life
= 17210/10 = 1721/-
Hence answer is 1721/- for all years and also hence for year 2.
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Peach tree has an average life of 12 years. First 3 years no benefit would arise, 4 to 8 would be peak and after that slowly decreasing.
Hence in 9th year there would be least value and least depreciation.
Hence answer is $1612.80