Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $63,400 has an estimated residual value of $2,400 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost (b) The straight-line rate () The annual straight-line depreciation Feedback $ 6,100 X 10 % $ 31,700 X Check My Work Depreciable cost is the difference between the asset's initial cost and its residual value. The residual value is the estimated value at the end of the useful life. Straight-line depreciation allocates the depreciable cost of the asset equally over the expected useful life