Answer:
Annual depreciation 2022= $24,000
Explanation:
Giving the following information:
Purchase price= $150,000
Useful life= 5 years
Salvage value= $0
First, we need to calculate the annual depreciation for 2021:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (150,000 - 0) / 5
Annual depreciation= $30,000
Now, the revised depreciation:
Annual depreciation= (150,000 - 30,000) / 5
Annual depreciation= $24,000
We divide by 5 years because one year has passed.
