Compute the depreciation expense for the year ended December 31, 2021. Indigo elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $750,000.

Incomplete question because the cost value of the asset in question is unknown

Explanation:

This question is incomplete.

However to calculate depreciation rate using the straight line basis, the formula below can be applied.

Depreciation rate = Cost - scrap value / estimated useful life.

Lets take this as an example:

Assuming the cost of the building is $3,000,000 and the salvage value is $750,000 with an estimated useful life of 30 years.

The depreciation rate will be calculated as

$3,000,000 - $750,000 / 30

$2,250, 000 / 30 = $75,000

Depreciation rate = $75,000