Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 36)

If a company purchases a machine for $15,000, with an estimated useful life of 3 years and a residual value of $3,000, what would the annual depreciation be using the straight-line method?
$4,000
$5,000
$12,000
$15,000

Explanation

($15,000 - $3,000) / 3 = $4,000

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