A machine was purchased for 45000 It has a useful life of 6

A machine was purchased for $45,000. It has a useful life of 6 years and a residual value of $6,000. Under the straight-line method, what is the annual depreciation expense?

$1,000

Solution

Cost of machiney 45000 Less: Salvage Value 6000 Depreciable amount 39000 Life 6 Annual depreciation 6500 Answer is $ 6500