Answer:
Annual depreciation= $11,520
Explanation:
Giving the following information:
Purchase price= $50,320
Salvage value= $4,600
Estimated copies= 1,143,000
<u>First, we need to calculate the depreciable value:</u>
Depreciable value= purchase price - salvage value
Depreciable value= 50,320 - 4,600
Depreciable value= $45,720
<u>Now, the depreciable rate:</u>
Depreciable rate= depreciable value / /useful life of production in copies
Depreciable rate= 45,720/1,143,000
Depreciable rate= $0.04 per copie
<u>Finally, the annual depreciation:</u>
Number of copies= 288,000
Annual depreciation= 0.04*288,000
Annual depreciation= $11,520