Depreciation and amortization (questions 6–10):
Agrokinsey Inc. acquires a new piece of equipment in the beginning of 2016 at a cost of €20,000. The company estimates that the equipment’s useful life is 10 years and its salvage value €4,000. Agrokinsey follows the straight-line depreciation method. Answer the following five questions:
What is the depreciable amount of the equipment (i.e. total value of the equipment to be depreciated)?