A firm is considering purchasing two assets.Asset L will have a useful life of 15 years and cost $4 million; it will have installation costs of $750,000 but no salvage or residual value.Asset S will have a useful life of 5 years and cost $2 million; it will have installation costs of $500,000 and a salvage or residual value of $400,000.Which asset will have a greater annual straight-line depreciation?
A)Asset L has $37,500 more in depreciation per year.
B)Asset L has $54,167 more in depreciation per year.
C)Asset S has $103,333 more in depreciation per year.
D)Asset S has $37,500 more in depreciation per year.

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The Answer of A firm is considering purchasing two assets.Asset L will have a useful life of 15 years and cost $4 million; it will have installation costs of $750,000 but no salvage or residual value.Asset S will have a useful life of 5 years and cost $2 million; it will have installation costs of $500,000 and a salvage or residual value of $400,000.Which asset will have a greater annual straight-line depreciation?
A)Asset L has $37,500 more in depreciation per year.
B)Asset L has $54,167 more in depreciation per year.
C)Asset S has $103,333 more in depreciation per year.
D)Asset S has $37,500 more in depreciation per year.

A Firm Is Considering Purchasing Two Assets