An asset is purchased for$50,000.It has an estimated useful life of 12 years and a

salvage value of $5,000. What is the annual depreciation of the asset using the straight-line method?

45,000/12

To calculate the annual depreciation of an asset using the straight-line method, you need to subtract the salvage value from the initial cost and then divide the result by the estimated useful life of the asset.

In this case, the initial cost of the asset is $50,000 and the salvage value is $5,000. The estimated useful life is 12 years.

To calculate the annual depreciation using the straight-line method, follow these steps:

1. Subtract the salvage value from the initial cost: $50,000 - $5,000 = $45,000
2. Divide the result by the estimated useful life: $45,000 / 12 = $3,750

Therefore, the annual depreciation of the asset using the straight-line method is $3,750.