Answer:
Annual depreciation 2017= $54,000
Step-by-step explanation:
Giving the following information:
The company purchased equipment on January 1, 2017, for $600,000. The residual value is $60,000 and the estimated useful life is 10 years.
Under the straight-line depreciation method, the annual depreciation is the same in all of the useful life. We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (600,000 - 60,000)/10= $54,000