In early January 2017, NewTech purchases computer equipment for $272,000 to use in operating activities for the next four years. It estimates the equipments salvage value at $20,000.

Straight-Line Depreciation Annual Choose Choose Denominator: Depreciation Expense Numerator: Depreciation expense $ Estimated useful life (years) Cost minus salvage / $ 20,000 5,000 4 Annual Year Year-End Book Value Depreciation 2017 $ $ 136,000 136,000 2018 68,000 68,000 2019 34,000 34,000 2020 14,000 20,000 $ Total 252,000