Classic straight line depreciation of a $100,000 asset takes place over a 5 year recovery period. If

Question:

Classic straight line depreciation of a $100,000 asset takes place over a 5 year recovery period. If the salvage value is 15% of first cost, the depreciation charge for year 3 is closest to:

(a) $17,000

(b) $20,000

(d) $28,000

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...

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