A healthcare facility buys a SuperScanner for $60,000. It has a six-year life expectancy and an estimated salvage value of $10,000. The accountant recommends a straight-line depreciation method. What is the annual charge for depreciation of the SuperScanner?

Question

Quizplus · Accepted Answer

The annual depreciation charge using the straight-line method is calculated by subtracting the salvage value from the cost and then dividing by the useful life. So, ($60,000 - $10,000) / 6 = $50,000 / 6 = $8,333.33 per year.

A Healthcare Facility Buys a SuperScanner for $60,000