$24,800 would be the book value of the asset on January 1, 2019
Explanation:
Straight-line depreciation is a popular depreciation process in which the value of a fixed asset slowly declines over its useful life.
Straight line depreciation is the default method used to slowly reduce the amount of a fixed product over its useful life.
Divide the estimated useful life (in years) into 1 to arrive at the straight-line depreciation rate.
Multiply the depreciation rate by the asset cost (less salvage value).
For example, if a of $20,000 and a useful life of 5 years. The straight line depreciation for the machine would be calculated as follows: Cost of the asset: $100,000. Cost of the asset – Estimated salvage value: $100,000 – $20,000 = $80,000 total depreciable cost.
