Business FinancesQuestion 1166 of 1605
A $50,000 piece of equipment has an estimated salvage value of $5,000 and a useful life of 9 years. What is the annual straight-line depreciation?
a.$45,000
b.$5,000
c.$4,500
d.$5,556
Explanation
Straight-line = (cost - salvage) / life = ($50,000 - $5,000) / 9 = $45,000 / 9 = $5,000 per year.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)