A machine bought for #35,000 was estimated to have a life span of 5 years with a scrap value of #9,000.
If the scrap value is presently #15,000 what will be the yearly depreciation using straight line method?
-
A.
#4,000 -
B.
#7,000 -
C.
#11,000 -
D.
#24,000
Correct Answer: Option A
Explanation
35,000 – 15000 = 20000
20000/ 5= 4000