A business whose financial year ends on 31 December, 2008, purchases equipment for $5000. The equipment will be depreciated by 10 equal installments. On January 4th, 2010, the machine was sold for $3760. What is the annual depreciation?
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A business whose financial year ends on 31 December, 2008, purchases equipment for $5000. The equipment will be depreciated by 10 equal installments. On January 4th, 2010, the machine was sold for $3760. What is the annual depreciation?
If there is no salvage value, just take the $5000 and divide it by the 10 payments. If the payments are annual, then the annual depreciation is $500.
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