The life of a microwave is 7 years. The original cost of the microwave was $1,200 and the salvage value was $500. What is the first-year depreciation?

Name: The life of a microwave is 7 years. The original cost of the microwave was $1,200 and the salvage value was $500. What is the first-year depreciation?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The first-year depreciation is calculated as (Original cost - Salvage value) / Life of the asset. In this case, the first-year depreciation is ($1,200 - $500) / 7 = $175.

The Life of a Microwave Is 7 Years