On January 1, 2017, Anodel, Inc acquired a machine for $1,010,000
The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $62,000. Calculate the depreciation expense per year using the straight-line method.
A) $202,000
B) $189,600
C) $251,600
D) $252,500
B .Straight-line depreciation = (Cost - Residual value) / Useful life
Depreciation as per the straight-line method = ($1,010,000 - $62,000 ) / 5 = $189,600
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