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QuestionCalculate the annual straight-line depreciation DD for an item costing \15,963withalifeof13years:15,963 with a life of 13 years: D=(1/n)x$.

Studdy Solution

STEP 1

Assumptions1. The cost of the equipment is $15,963. The useful life of the equipment is13 years3. The depreciation is calculated using the straight-line method

STEP 2

The formula for straight-line depreciation is given by=1n×x = \frac{1}{n} \times xwhere- $$ is the annual depreciation, - $n$ is the useful life of the item in years, - $x$ is the cost of the item.

STEP 3

Now, plug in the given values for the cost of the equipment and the useful life of the equipment into the formula to calculate the annual depreciation.
=113×$15,963 = \frac{1}{13} \times \$15,963

STEP 4

Perform the division operation first according to the order of operations (PEMDAS/BODMAS).
=$1,227.15 = \$1,227.15The annual straight-line depreciation is approximately $1,227.15 per year.

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