(90,000 + 4,200 + 12,000)/5 = $17640
What is depreciable cost?
The value of a fixed asset less the total accumulated depreciation that has been recorded against it is its depreciated cost. The total amount of capital that is "used up" in a certain time frame, such as a fiscal year, is referred to as the depreciated cost in a broader economic sense. The accuracy with which depreciation is calculated allows one to assess patterns in a company's capital expenditures and how aggressive its accounting practices are.
The terms "salvage value," "net book value," and "adjusted cost base" are all synonyms for "depreciated cost."
The value of a fixed asset less the total accumulated depreciation that has been recorded against it is its depreciated cost.
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