Answer: To calculate the annual depreciation expense of the equipment using the straight-line method, we need to first determine the depreciable cost of the asset, which is the cost of the asset minus its estimated residual value.
Depreciable Cost = Cost of asset - Estimated Residual Value
Depreciable Cost = $212,000 - $14,000
Depreciable Cost = $198,000
Next, we can use the following formula to calculate the annual depreciation expense:
Annual Depreciation Expense = Depreciable Cost / Useful Life
Annual Depreciation Expense = $198,000 / 15 years
Annual Depreciation Expense = $13,200 per year
Therefore, the annual depreciation expense of the equipment using the straight-line method is $13,200 per year.
Explanation: