Answer:
Depreciable amount= $880,000
Explanation:
Giving the following information:
Your company buys a tower crane for $900,000 on January 1, 2019. It has a 20-year life, it's expected salvage value is $20,000.
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (900,000 - 20,000)/20= $44,000
Depreciable amount= original cost - salvage value= 880,000
