A refrigerator used by a wholesale warehouse has a cost of $64,000, an estimated residual value of $5,200,

A refrigerator used by a wholesale warehouse has a cost of $64,000, an estimated residual value of $5,200, and an estimated useful life of 12 years. What is the amount of the annual depreciation computed by the straight-line method?

Answer:

$4,900 [($64,000 – $5,200) ÷ 12]