Considering the following information

--> Cost of purchasing the horses = 199,000

--> Useful life of horses = 5 years

But one of the three owners (Ginny) has insisted that horses not be sold when they are no longer fit to ride. As an animal lover she says that non-ridable horses be put out to pasture until their natural death rather than resold.

What is the straight line depreciation of the horses?

NB: formula: (cost - residual value) / useful life