Assume you are completing a swot analysis for CVS. Amazon s entrance into the healthcare

the annual depreciation expense under straight-line method is $13,750

Explanation:

The computation of the annual depreciation expense under straight-line method is as follows:

= (Cost of the equipment - scrap value) ÷ (useful life)

= ($80,000 - $25,000) ÷ (4 years)

= $55,000 ÷ 4 years

= $13,750

hence, the annual depreciation expense under straight-line method is $13,750

We simply applied the above formula so that the correct value could come

And, the same is to be considered