Straight Line Method
A bakery purchases a new industrial oven for $5,000. It has an estimated salvage value of $500 and a useful life of 5 years. Calculate the annual depreciation expense.
$900 per year
A delivery truck costs $44,000 with a salvage value of $4,000. It is expected to drive 200,000 miles over its life. How much does the delivery truck depreciate per mile?
$0.20 per mile
A company records an annual depreciation of $2,500 for its office furniture. The furniture has a 10-year useful life and a $500 salvage value. What was the original cost?
$25,500
A cafe bought a roaster for $16,000 with a salvage value of $1,000. If the annual depreciation expense is $3,000, how many years is its useful life?
5 years
A startup company buys 10 ergonomic desks for a total cost of $8,000. They expect to use them for 8 years, after which they can sell them for a total of $800. Calculate the annual depreciation expense for the desks.
$900 per year
A industrial bakery purchases an oven for $12,000 with a salvage value of $2,000. The oven is rated for 5,000 baking cycles. How much does the oven depreciate per cycle?
$2 per cycle
A rental car company determines their depreciation rate is $0.15 per mile. The car is expected to drive 100,000 miles and have a salvage value of $2,000. What was the cost of the car?
$15,200
A retail store installed a security system for $9,500. It has a salvage value of $500. The company records $1,125 in depreciation each year. What is the useful life in years?
8 Years
A logistics firm purchases a delivery drone for $12,500. It has an estimated salvage value of $2,500 and is expected to be useful for 4 years. What is the annual depreciation expense?
$2,500 per year
A commercial printer costs $25,000 and has a salvage value of $5,000. It has a useful life of 10,000 operating hours. How much does the printer depreciate per operating hour?
$2 per operating hour
A factory machine has a 15-year life and a salvage value of $10,000. If the annual depreciation expense is $12,000, what did the factory pay for it?
$190,000
A forklift was purchased for $42,000. The company expects to sell it for $6,000 at the end of its life. If the annual depreciation is $3,000, what is the useful life in years?
12 Years
A local cafe invests in a high-end espresso machine costing $15,000. The owner estimates it will be worth $3,000 at the end of its 6-year life. Calculate the annual depreciation.
$2,000 per year
A beverage company buys a bottling machine for $85,000 with a salvage value of $5,000. It is expected to bottle 1 million units over its lifetime. How much does the bottling machine depreciate per bottle?
$0.08 per bottle
A tech lab buys a 3D printer with a useful life of 8,000 printing hours. The depreciation rate is $1.50 per hour. If the salvage value is $1,200, what was the original cost?
$13,200
A jet engine costs $2,000,000 and has a salvage value of $200,000. The depreciation rate is $60 per flight hour. What is the engine's total life in flight hours?
30,000 hours
A local newspaper buys a digital printing press for $45,000. It has an estimated salvage value of $5,000 and a useful life of 10 years. What is the annual depreciation expense?
$4,000 per year
A machine that makes tennis balls costs $100,000 with a $10,000 salvage value. It is rated to produce 1,800,000 tennis balls. This year, it produced 200,000 balls. Calculate the depreciation expense.
$0.05 per tennis ball
$0.05 x 200,000 = $10,000 depreciation this year.
An emergency generator has a salvage value of $5,000. It is rated for 2,500 total run-hours with a depreciation rate of $18.00 per hour. What was the original cost?
$50,000
A paint factory buys a mixer for $55,000 with a salvage value of $5,000. If the depreciation rate is $0.10 per gallon of paint mixed, what is the total gallons the mixer can produce?
500,000 gallons