Answer:
Annual depreciation= $112,500
Explanation:
Giving the following information:
Carson Company has a piece of machinery that costs $500,000 and is expected to have a useful life of 4 years. The residual value is expected to be $50,000.
To calculate the depreciation expense using the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (500,000 - 50,000)/4= $112,500
