Using the straight-line method, if a company buys a computer for $2,000 with a u

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What’s inside this PDF?

Question: Using the straight-line method, if a company buys a computer for $2,000 with a useful life of 4 years and a salvage value of $200, what is the annual depreciation?

Options:

$450
$450.00
$500
$600

Correct Answer: $450.00

Solution:

Annual Depreciation = (Cost - Salvage Value) / Useful Life = ($2,000 - $200) / 4 = $450.

Using the straight-line method, if a company buys a computer for $2,000 with a u

Practice Questions

Using the straight-line method, if a company buys a computer for $2,000 with a useful life of 4 years and a salvage value of $200, what is the annual depreciation?

$450
$450.00
$500
$600

Questions & Step-by-Step Solutions

Using the straight-line method, if a company buys a computer for $2,000 with a useful life of 4 years and a salvage value of $200, what is the annual depreciation?

Step 1: Identify the cost of the computer, which is $2,000.
Step 2: Identify the salvage value of the computer, which is $200.
Step 3: Identify the useful life of the computer, which is 4 years.
Step 4: Calculate the depreciable amount by subtracting the salvage value from the cost: $2,000 - $200 = $1,800.
Step 5: Divide the depreciable amount by the useful life to find the annual depreciation: $1,800 / 4 = $450.

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Using the straight-line method, if a company buys a computer for $2,000 with a u

What’s inside this PDF?

Using the straight-line method, if a company buys a computer for $2,000 with a u

Practice Questions

Questions & Step-by-Step Solutions

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