Cost price of a machine is $3000, estimated residual value is $2000 and useful life is 5 years and by straight line method.

=(3000-2000)/5

$ 200 each year

Thanks Aliza...

Straight line Method = Cost - RV / Useful life, So, adjust figures in this formula.

 = 3,000 - 2,000 / 5 = $ 200 Per Year

 2000 h / cash

1000 h / accumulated depreciation

         To 2000 h / Original

         1000 to h / earnings

agree with answers >>>>>>>>>>>>>>>>>>>>>>>>>>>>>

200 per year........             ......

Cost of machine 3000, Residual Value or salvage value 2000, difference $1000

(3-2) / 5

As per straight line depreciation method, yearly depreciation will be $ 200

$ 3000 - $2000 / 5 years = $ two hundred per year

Acknowledge expert answer in field of financial analysis. Thanks

It sounds like a joke as it is so simple, but 3,000-2,000=1,000/5 = 200$/year.

Cost price =3000r.v =2000depreciation =3000-2000/5year 1 =200

year 2 =200year 3 =200

I agree with the Answer added by: Ramzan Tufail  Senior Accountant 29 days ago