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1 year ago

Depreciation by Two Methods

Business

1 answer:

lesya [120]1 year ago

3 0

The amount of annual depreciation by the straight-line method is $18,800.

<h3>Annual depreciation</h3>

a. Annual depreciation

Annual depreciation=[($80,000 - $4,800) ÷ 4]

Annual depreciation=$18,800

b. Annual depreciation

Year 1 Annual depreciation= 10% × $80,000

Year 1 Annual depreciation = $8,000

Year 2 Annual depreciation= 10% × ($75,000 - $7,500)

Year 2 Annual depreciation = $7,520

Therefore the amount of annual depreciation by the straight-line method is $18,800.

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