Ex 9-9 Straight-line depreciation ObJ. 2

1 answer:

3 0

Depreciation = (Cost - Residual)/Useful Life
Cost = $48,000
Residual = $9,000
Useful Life = 15 years

Depreciation = (48,000-9,000)/15
Depreciation = 39,000/15
Depreciation = $2,600

The refrigerator will depreciate at $2,600 a year.

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