The formula to compute annual straight-line depreciation is:

A) Depreciable cost divided by useful life in units.
B) (Cost plus salvage value) divided by the useful life in years.
C) (Cost minus salvage value) divided by the useful life in years.
D) Cost multiplied by useful life in years.
E) Cost divided by useful life in units.

Straight-line Depreciation

A method of calculating the depreciation of an asset, which assumes the asset depreciates evenly over its useful life.

Salvage Value

The estimated residual value of an asset after its useful life has ended and it can no longer be used for productive purposes.

Depreciable Cost

The total amount of an asset's cost that can be depreciated over its useful life, excluding salvage value.