Under A straight line basis which is a method of computing depreciation and amortization by dividing the difference between an asset's cost and its expected salvage value by the number of years it is expected to be used. Also known as straight line depreciation or straight line amortization, this is the simplest depreciation method. But instead of that find The rate of depreciation 100/5 years=20% depreciation rate per year Total cost 250×50=12,500 Salvage value 40×50=2,000 Subtract the salvage value from the total cost of televisions 12,500−2,000=10,500 In the first year the depreciation is 10,500×0.2=2,100 Book value 12,500−2,100=10,400 In the second year the depreciation is 10,500×0.2=2,100 Book value 10,400−2,100=8,300 In the third year the depreciation is 10500×0.2=2100 Book value 8300-2100=6200
the book value for all of the televisions at the end of the third year is 6200
