Q) assuming a straight line depreciation, what is depreciation for year 20x4? 2) at what amount net of accumulated depreciation ? would these assets be presented in the balance sheet of the hospital at December 31, 20x6? Cost	Salvage Value	Useful Life
Land	100,000
Buildings	8,000,000	1,600,000	40
Equipment	4,500,000	500,000	20
1)	Depreciation expense 2014
Depreciation expense	607	160,000
Accumulated depreciation-bldgs	131	160,000
Adjustment for 2014 depreciation of bldgs (8,000,000 - 1,600,000/40 Years)
Depreciation expense	607	200,000
Accumulated depreciation-equipment	141	200,000
Adjustment for 2014 depreciation of equipment (4,500,000 - 500,000/20 Years)
2)	BALANCE SHEET - December 31, 2016
Buildings, at cost	8,000,000
Less accumulated depreciation	800,000	<<160,000*5
Buildings, net	7,200,000
Equipment, at cost	4,500,000
Less accumulated depreciation	1,000,000	<<200,000*5
Equipment, net	3,500,000

My question is: way we multiple 160,000 and 200,000 by 5 to get the less accumulated depreciation?