A machine with a 5-year life has a first cost of $20,000 and a $2000 salvage value

Question:

A machine with a 5-year life has a first cost of $20,000 and a $2000 . Its annual operating cost is $8000 per year. According to the classical straight line method, the depreciation charge in year 2 is nearest to:
(a) $2800
(b) $3600
(c) $4500
(d) $5300

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...