A shipping company acquires a ferry. The cost of the hull is 700,000, with a useful life of 20 years; the cost of the engines, significant in relation to the total cost, is 300,000, with a useful life of 10 years. Residual values are nil; straight-line method. What is the total annual depreciation charge?
- Cost of the hull
- 700,000
- Useful life of the hull
- 20
- Cost of the engines
- 300,000
- Useful life of the engines
- 10