Depreciation Examples: Asset A has historical cost of $10,000, salvage value of $2,000, and a 3 year useful life. Asset B has historical cost of $20,000, salvage value of $1,000, and a 6 year useful life. Question: What is the depreciation cost for Asset A for year 1 if use straight-line method? How about for Asset B for year 1? Activity Info: Asset A produces 2,000 units in year 1. We expect it to produce 5,000 units in total over its life. Question: What is the depreciation cost for Asset A for year 1 using activity method