SportsWorld purchased store equipment for $65,000.The equipment has an estimated residual value of $6,000,with an estimated useful life of 10 years.The annual depreciation using the straight-line method will be $3,900 per year.

Question

Quizplus · Accepted Answer

The annual depreciation using the straight-line method is calculated as (Cost - Residual Value) / Useful Life. Therefore, ($65,000 - $6,000) / 10 = $5,900 per year.

SportsWorld Purchased Store Equipment for $65,000