Office furniture was purchased for $15 000.The residual value of the furniture is $1000 and its useful life is estimated to be 7 years.The annual depreciation amount will be:

Question

Quizplus · Accepted Answer

The annual depreciation amount is calculated by subtracting the residual value from the purchase price and then dividing by the useful life. So, ($15,000 - $1,000) / 7 years = $2,000 per year.

Office Furniture Was Purchased for $15 000