Question

QUESTION 8 of 10: You buy a lathe for $20,000. Its useful life is 10 years. Each week, over 10 years, you recognize an equal portion of its cost. This is called depreciation. What is your weekly depreciation for the lathe?

Answer 1

the weekly depreciation is $38.46

Step-by-step explanation:

The computation of the weekly depreciation is shown below;

Given that

The Purchase value of the lathe is $20,000

Useful life is 10 years

So, the annual depreciation is

= $20,000 ÷ 10 years

= $2,000 per year

Now the weekly depreciation is

= $2,000 ÷ 52 weeks

= $38.46

Hence, the weekly depreciation is $38.46