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| Exhibit 3. Straight-line depreciation method | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Historical cost of equipment | $45,000 | ||||||||||||
| Estimated salvage value | $5,000 | ||||||||||||
| Estimated useful life | 8 years | ||||||||||||
| Annual Depreciation expense calculation | ($45,000 – $5,000) / 8 years = $5,000 depreciation expense per year | ||||||||||||
