Question

Concord Corporation purchased a depreciable asset for $175700. The estimated salvage value is $14200, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset

Answer 1

the depreciation base of this asset is $161,500

Step-by-step explanation:

Depreciation Base is the Value that is divided y the useful life to obtain the depreciation charge of an asset.

Depreciation Charge under straight line method is calculated as :

Depreciation = (Cost - Salvage Value)/Number of Useful Life

Therefore depreciation base of this asset is $175700 - $14200 = $161,500