Given:
Cost of the roof of a property = $14,000
Economic life = 18 years
To find: value after 4 years using straight-line depreciation method.
Solution:
Loss of value per year = cost of roof of property / economic life of property
14000/18 = $777.78
Every year, value of property is getting depreciated by $777.78.
So, value after four years is calculated below:
Value after 1 year = $(14000 - 777.78) = $13222.22
Value after 2 year = $(13222.22 - 777.78) = $12444.44
Value after 3 year = $(12444.44 - 777.78) = $11666.66
Value after 4 year = $(11666.66 - 777.78) = $10888.88
Value after four years = $10888.88
