Connect with a community of experts and enthusiasts on IDNLearn.com. Our platform provides detailed and accurate responses from experts, helping you navigate any topic with confidence.

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?

Sagot :

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 

[tex] \frac{3,800}{4} [/tex] = 950

So the depreciation expense each year is 950.