Question

A pharmacy purchased a tablet counter for $2400. The counter has a usable lifetime of 5 years only with a salvage value of $200. How many dollars will be depreciated annually?

Answer 1

Answer: $440 will be depreciated every year.

Explanation:

Given that

Cost of tablet = $2,400

Salvage value = $200

lifetime = 5 years

Depreciation:

Depreciation = Cost – Salvage Value / Usable Lifetime

= 2,400−200 / 5

= 2,200 / 5

= 440

Therefore, $440 will be depreciated every year.