a farm manager purchases a tractor for $45,000 and plans to depreciate it over a 15 - year useful life using…

a farm manager purchases a tractor for $45,000 and plans to depreciate it over a 15 - year useful life using straight - line depreciation. what will be the annual depreciation expense? 1 point $1,000 $3,000 $5,000 $15,000 am i right? skip for now submit answer

a farm manager purchases a tractor for $45,000 and plans to depreciate it over a 15 - year useful life using straight - line depreciation. what will be the annual depreciation expense? 1 point $1,000 $3,000 $5,000 $15,000 am i right? skip for now submit answer

Answer

Explanation:

Step1: Recall straight - line depreciation formula

Annual depreciation = $\frac{\text{Cost of asset}}{\text{Useful life}}$

Step2: Substitute values

The cost of the tractor is $45000$ and the useful life is $15$ years. So, Annual depreciation = $\frac{45000}{15}$

Step3: Calculate result

$\frac{45000}{15}=3000$

Answer:

$3000$