A machine that was purchased on January 1 for $60,000 has an estimated salvage value of $12,000.If the machine's depreciation rate is 20%, its annual depreciation is
A)$12,000.
B)$48,000.
C)$9,600.
D)$14,400.

Question

Quizplus · Accepted Answer

The annual depreciation is calculated using the formula: (Cost - Salvage Value) * Depreciation Rate. So, ($60,000 - $12,000) * 20% = $9,600.

A Machine That Was Purchased on January 1 for $60,000