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Cost price of a machine is $3000, estimated residual value is $2000 and useful life is 5 years and by straight line method.

What would be the depriciation

1 ) $ per Year

2) $ Per Year

3) $ per year

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Question added by Deleted user
Date Posted: 2016/04/02
SULTAN-E- ROOM
by SULTAN-E- ROOM , Head Accountant , DALLA DRIVING ACADEMY

=(3000-2000)/5

$ 200 each year

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Thanks Aliza...

 

Straight line Method = Cost - RV / Useful life, So, adjust figures in this formula.

 

 = 3,000 - 2,000 / 5 = $ 200 Per Year

Ahmed Abouelmagd
by Ahmed Abouelmagd , Account Manager , KM International Factory

 2000 h / cash

1000 h / accumulated depreciation

         To 2000 h / Original

         1000 to h / earnings

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with answers >>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Wasim khan wazir
by Wasim khan wazir , Finance Specialist , Mott Macdonald

200 per year........             ......

HASSAN AHMED
by HASSAN AHMED , Internal Auditor , TIE

Cost of machine 3000, Residual Value or salvage value 2000, difference $1000

(3-2) / 5

As per straight line depreciation method, yearly depreciation will be $ 200

Meena Rajangam
by Meena Rajangam , Planning Executive , Hepworth PME LLC

$ 3000 - $2000 / 5 years = $ two hundred per year

Ghada Eweda
by Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.

Acknowledge expert answer in field of financial analysis. Thanks

Luca Salvi
by Luca Salvi , Executive Vice President , Italian Energy Products LLC

It sounds like a joke as it is so simple, but 3,000-2,000=1,000/5 = 200$/year.

Ahmed Siddiq
by Ahmed Siddiq , Billing specialist , Muhammed Al Ojaimi Contracting

Cost price =3000r.v =2000depreciation =3000-2000/5year 1 =200

year 2 =200year 3 =200

Mohammad Iqbal Abubaker
by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

I agree with the Answer added by: Ramzan Tufail  Senior Accountant 29 days ago

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