Question

Ex 9-9 Straight-line depreciation ObJ. 2

Answer 1

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.