Considering the following information for a business that rents out horses for people to ride.

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

--> Useful life of horses = 5 years

The bank of the business has agreed with the owners that the horses are to be classified as a non current asset. But one of the three owners of the business (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? (considering it is a non-current asset that will depreciate)

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