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22 December, 07:46

Concord Corporation purchased a depreciable asset for $175700. The estimated salvage value is $14200, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset

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  1. 22 December, 09:10
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    the depreciation base of this asset is $161,500

    Explanation:

    Depreciation Base is the Value that is divided y the useful life to obtain the depreciation charge of an asset.

    Depreciation Charge under straight line method is calculated as:

    Depreciation = (Cost - Salvage Value) / Number of Useful Life

    Therefore depreciation base of this asset is $175700 - $14200 = $161,500
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