A company purchased a fixed asset worth $80,000 and incurred $10,000 in installation costs. The asset has

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Question:

A company purchased a fixed asset worth $80,000 and incurred $10,000 in installation costs. The asset has a useful life of 5 years and is being depreciated using the straight-line method. Calculate the following:
a) The annual depreciation expense
b) The book value of the asset after 2 years.