A refrigerator used by a wholesale warehouse has a cost of $89,000, an estimated residual value of $6,400, and an estimated useful life of 5 years. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answer in the question below. Open spreadsheet What is the amount of the annual depreciation computed by the straight-line method? Round your answer to the nearest dollar.

Annual Depreciation = $ 16,520

Explanation:

Depreciation:  Depreciation is the systematic allocation of cost of an asset over its useful life.

Straight Line Depreciation: Its is a method of depreciation that spreads the cost of an asset over the useful life equally.

Formula: Annual Depreciation = (Cost of Asset - Residual Value) ÷ Useful Life.

Annual Depreciation = ($89,000-$6,400) ÷ 5

Annual Depreciation = $ 16,520.

answer; the above statement/question is ( true);