What is the 2nd years depreciation using straight line depreciation? Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years.
Why did'nt you deduct the estimated residual value of 3000 from the initial cost of 65000 before dividing the answer to the estimated useful life of 5 years? Because that's what i did and I got 12,400. Thank you.