Ex 9-9 Straight-line depreciation ObJ. 2

A refrigerator used by a meat processor has a cost of $48,000, an estimated residual value of $9,000, and an estimated useful life of 15 years. What is the amount of the annual depreciation computed by the straight-line method?

Question

Mathematics

Aisha Rivers

25 August, 08:27

Ex 9-9 Straight-line depreciation ObJ. 2

A refrigerator used by a meat processor has a cost of $48,000, an estimated residual value of $9,000, and an estimated useful life of 15 years. What is the amount of the annual depreciation computed by the straight-line method?

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Answers (1)

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Caitlyn Hopkins · 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.

Ex 9-9 Straight-line depreciation ObJ. 2A refrigerator used by a meat processor has a cost of $48,000, an estimated residual value of $9,000, and an estimated useful life of 15 years. What is the amount of the annual depreciation computed by the straight-line method?

Ex 9-9 Straight-line depreciation ObJ. 2

A refrigerator used by a meat processor has a cost of $48,000, an estimated residual value of $9,000, and an estimated useful life of 15 years. What is the amount of the annual depreciation computed by the straight-line method?