Problema Solution
Using the straight-line method, what is the depreciation expense for a computer that cost $4,500, has a residual value of $700, and has a life of four years?
Answer provided by our tutors
Depreciation = (Cost - Residual value) / Useful life
In our case:
Cost = $4,500
Residual value = $700
Useful life = 4 years
Depreciation = (4500 - 700) / 4
Depreciation = $950