I need to calculate the depreciation of an asset using straight line depreciation. This is the...
I need to calculate the depreciation of an asset using straight line depreciation.
This is the information I have but I'm struggling to find the answer without a value for useful life.
It was purchased for $30720, and depreciates at 20% per annum. It also has a $0 residual value.
Any help would be useful!
Homework Answers
Ans:
Purchase cost of $30,720 – estimated salvage value of $0 = Depreciable asset cost of $30,720
1 / 5-year useful life = 20% depreciation rate per year
20% depreciation rate x $30,720 depreciable asset cost = $6144 Annual Depreciation
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