At the start of Year 1, a company buys a new piece of equipment for $25MM. Under straight line depreciation, and with a 10 year useful life, what is the annual depreciation expense?

At the start of Year 1, a company buys a new piece of equipment for $25MM. Under straight line depreciation, and with a 10 year useful life, what is the annual depreciation expense?

At the start of Year 1, a company buys a new piece of equipment for $25MM. Under straight line depreciation, and with a 10 year useful life, what is the annual depreciation expense?







A) $25MM
B) $2.5MM
C) $5MM
D) $10MM










Answer: B