A firm is considering purchasing two assets. Asset A will have a useful life of 15 years and cost RM3 million; it will have installation costs of RM400,000 but no salvage or residual value. Asset B will have a useful life of 6 years and cost RM1.3 million; it will have installation costs of RM180,000 and a salvage or residual value of RM300,000. Which asset will have a greater annual straight-line depreciation?

Select one:

a. Asset A has RM40,000 more in depreciation per year.

b. Asset A has RM30,000 more in depreciation per year.

c. Asset B has RM40,000 more in depreciation per year.

d. Asset B has RM30,000 more in depreciation per year.