Kristin, Inc. depreciates its plant assets over a 10-year life with a 10% salvage value. Using straight-line depreciation, which calculation will Kristin use during year 2 of the asset's life?

Question

Quizplus · Accepted Answer

Straight-line depreciation is calculated as (Cost - Salvage Value) / Useful Life. Since the useful life is 10 years and there's a 10% salvage value, the formula simplifies to 10% of (Cost - Salvage Value), which matches option A.