Question

An accounting firm purchased a new digital camera that cost $2,500. The life of the camera is estimated to be 5 years. The total salvage value after 5 years of use is estimated to be $700. Using the straight-line method, find the annual depreciation of the camera.

Answer 1

2500-700 = 1800
1800/5 = 360

The annual depreciation of the camera is $360.