Suppose a company acquires an asset at the beginning of this year for $100,000. If the asset has a salvage value of $10,000 and is depreciated using straight-line over ten years, the depreciation in the first year is closest to:
A) $9,000.
B) $9,900.
C) $10,000.

Question

Quizplus · Accepted Answer

The straight-line depreciation is calculated as (Cost - Salvage Value) / Useful Life. Here, it is ($100,000 - $10,000) / 10 = $9,000 per year.

Suppose a Company Acquires an Asset at the Beginning of This