Question

How do i calculate this problem. An asset was purchased for $73,000, current acc'd depreciation is $13,800, asset is expected to have a useful life of 8 years, and be sold for an estimated $600, what is the new annual depreciation amount, here is my computation

Purchase price: 73000
Current acc'd dep: (13800)
Residual value: 59200
Salvage value: (600)
New annual dep: 7325 (59200-600)/8

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