Which asset have a greater annual straight-line depreciation

Reference no: EM13267515

A firm is considering purchasing two assets. Asset A will have a useful life of 15 years and cost $3 million; it will have installation costs of $400,000 but no salvage or residual value. Asset B will have a useful life of 6 years and cost $1.3 million; it will have installation costs of $180,000 and a salvage or residual value of $300,000. Which asset will have a greater annual straight-line depreciation?

A) Asset B has $40,000 more in depreciation per year.

B) Asset B has $30,000 more in depreciation per year.

C) Asset A has $30,000 more in depreciation per year.

D) Asset A has $40,000 more in depreciation per year.

Reference no: EM13267515

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