Question

A textile corporation buys equivalent with an initial purchase price of $750000. It is estimated its useful life will be 3 years and at that time it's value will be$75000. The total depreciation is depreciation is divided equally among the three years. What is the total amount of depreciation declared each year?

Answer 1

First,we have to find the depreciation, which is 750000-75000=675000. Dividing that by 3 (for 3 years), we get 225000 dollars per year