There are many methods for calculating depreciation, such as the straight line method, the Sum of the Years Method, and the Declining Balance Method. Each of these methods have different purposes.

Calculate the annual depreciation amount for the $$500,000$ crane discussed in Problem $1$ using the straight line method. Assume a $10$ year ownership life. Assume a $$50,000$ salvage value at the end of ten years.

Annual Depreciation Rate $=1/$ number of years of ownership

Annual Depreciation Amount $=$ Annual Depreciation Rate$($Price$-$Salvage Value$)$ Choose your answer to submit from:

A $$50,000$

B $$4000$

C $$45,000$

D $$50,000$ plus Federal tax amount