X-ray equipment with a cost of $360,000 has an estimated residual value of $20,000, an estimated useful life of 40 years, and is depreciated by straight-line method.

Instructions

1. What is the amount of annual depreciation?
2. What is the book value at the end of 21 years of use?
3. If at start of the year 21 it estimated that the remaining life is 15 years and the residual value is $10,000, what is the depreciation expense for each of the remaining 15 years?