Question

Forrest Lumber purchased a table saw for $810. After 2 years the saw had a depreciated value of $630. What is the amount of yearly depreciation?

Answer 1

Maybe you should post the options as well, so the users who's helping can know for sure.

Answer 2

To calculate the yearly depreciation, we need to find out how much the saw depreciated per year.

To do this, we can use the straight-line depreciation method which assumes that the value of an asset decreases by the same amount each year.

The formula for straight-line depreciation is:

Depreciation per year = (Initial cost - Salvage value) / Useful life

In this case, the initial cost is $810, the salvage value (value after 2 years) is $630, and the useful life is 2 years.

Plugging these values into the formula, we get:

Depreciation per year = ($810 - $630) / 2 = $90

Therefore, the amount of yearly depreciation for the table saw is $90.