the cost of a machine is $25,000 and its residual value is $1,000. the useful life of the machine is 10…

the cost of a machine is $25,000 and its residual value is $1,000. the useful life of the machine is 10 years. you are required to calculate the yearly depreciation\n\n$2,500\n\n$2,400\n\n$2,600\n\n$2,700

the cost of a machine is $25,000 and its residual value is $1,000. the useful life of the machine is 10 years. you are required to calculate the yearly depreciation\n\n$2,500\n\n$2,400\n\n$2,600\n\n$2,700

Answer

Explanation:

Step1: Find depreciable amount

Depreciable amount = Cost - Residual value = $25000 - 1000=24000$

Step2: Calculate yearly depreciation

Yearly depreciation = $\frac{\text{Depreciable amount}}{\text{Useful - life}}=\frac{24000}{10} = 2400$

Answer:

$2400$ (B. $2,400$)