The computer will be purchased at 4200 The expected salvage

The computer will be purchased at $4200. The expected salvage value at the end of its service life of 12 years is $2000. Using the straight line method, the annual depreciation for this computer is

Solution

Annual depreciation=(Cost-Salvage value)/Useful life

which is equal to

=(4200-2000)/12

which is equal to

=$183.33(Approx).