Question

Suppose you buy a piece of office equipment for $17,000. After 3 years you sell it for a scrap value of $3,000. The equipment is depreciated linearly over 3 years. The rate of depreciation of the piece of equipment is

Answer 1

Depreciation amount = Purchase Price - Scrape Value
Depreciation amount = $17,000            -      $3,000
Depreciation amount = $14,000

depreciation rate = $14,000/3 years
depreciation rate= $4667.67

Answer 2

Depreciated linearly means straight line depreciation
(Cost - scrap value) / years = amount of annual depreciation