Answer:
Annual depreciation= $16,000
Explanation:
Giving the following information:
Purchase price= $77,000
Useful life= 4 years
Salvage value= $13,000
Under the straight-line method, the depreciation expense remains constant during the life of the asset.
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (77,000 - 13,000) / 4
Annual depreciation= $16,000
