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You just bought a new piece of farm machinery for $100,000. You expect the machinery to have a useful economic life of 5 years, with
You just bought a new piece of farm machinery for $100,000. You expect the machinery to have a useful economic life of 5 years, with a projected salvage value of $10,000 at the end of its useful life. How much depreciation would you account for in year 5 of the asset's useful life if you use straight line depreciation methods?
a. | $0 since it is the end of the asset's useful life. | |
b. | $12,000 | |
c. | $10,000 | |
d. | $18,000 |
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