If the scrap value is presently #15000. What will be the yearly depreciation using straight-line method?

A machine bought for #35,000 was estimated to have a life span of 5 years with a scrap value of #9,000.

A. #4,000
B. #7,000
C. #11,000
D. #24,000

Correct Answer:

Option A – #4,000

Explanation

35,000 – 15000 = 20000

20000/ 5= 4000