Answer: $6,200
Explanation:
machine cost $35,100
Transport & installation cost $1,100
Total cost of machine = $36,200
Useful life is 5 years
Residual value is $5,200
Depreciation on a straight line bases is calculated thus:
= cost. - residual vale/ useful life
= $36,200 - $5,200/5
= $31,000/5
= $6,200
Annual depreciation is $6,200