Question

Carl buys a printer for his office on January 1, 2012 for $15,000. He estimates the machine to have a useful life of 10 years. The residual value of the machine is estimated to be $5,000. What will be the depreciation of the machine per year if the straight line method is used for calculation purposes?

Answer 1

1000 per year

Explanation:

cost. 15000

Minus residual value. 5000

= amount to depreciate. 10000

divided by useful life. 10 years

=. depreciation expense 1000