Answer:
Annual depreciation= $165,000
Explanation:
First, we need to calculate the accumulated depreciation at 2021:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (611,000 - 53,000) / 9
Annual depreciation= $62,000
Accumulated depreciation= 62,000*3= $186,000
Now, the depreciation for 2021:
Depreciable price= (611,000 - 186,000) - 95,000= $330,000
Remaining life= 5 - 3= 2 years
Annual depreciation= 330,000 / 2
Annual depreciation= $165,000
