Question

Equipment acquired at the beginning of the year at a cost of $340,000 has an estimated residual value of $45,000 and an estimated useful life of 10 years. determine the following. round your answer for the straight-line rate to one decimal place, if necessary.

Answer 1

Using straight-line rate, we are finding the annual depreciation with equal annual reductions.

Thus, total depreciation = 340,000 - 45,000 = 295,000
Duration of depreciation = 10 years
Therefore, using the straight-line rule, the annual depreciation is 29,500.

Answer: straight-line rate  is $29,500 per year.

Note: please proof question before posting.  Missing values and typos will delay your answer.

Answer 2

Straight-line rate is the depreciation rate each year
Since the useful life is 10 years So depreciation rate is
100%/10=10%

The answer is 10%