Answer:
$2,010,000
Explanation:
The computation of the depreciation expense for is shown below under Straight-line method:
= (Original cost - residual value) ÷ (useful life)
where,
Original cost = Purchase cost + installation cost
= $10,000,000 + $50,000
= $10,050,000
And, useful life is five years
= ($10,050,000- $0) ÷ (5 years)
= ($10,050,000) ÷ (4 years)
= $2,010,000
In this method, the depreciation is same for all the remaining useful life
