20-04-2015
Mathematics

Answered

using the straight line method. what is the depreciation expense for a computer that costs 4,500, has a residual value of 700, and has a life of 4 years?

Verified Answer :

20-04-2015

So over 4 years, this computer's value will go from 4,500 to 700.

That's a difference of 3,800 over 4 years. Straight-line means the amount is the same every year, so

\(\frac{3,800}{4}\) = 950

So the depreciation expense each year is 950.

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