Deep Blue, a deep sea fishing company, bought a boat for $250,000. After 9 years, Deep Blue plans to sell it for a scrap value of $95,000. Assume linear depreciation.

Therefore, we use the linear depreciation and we get is 17222.22.

Step-by-step explanation:

From Exercise we have that is boat $250,000.

The straight line depreciation for a boat would be calculated as follows:

Cost boat is $250,000.

For $95,000 Deep Blue plans to sell it after 9 years.

We use the formula and we calculate:

(250000-95000) / 9=155000/9=17222.22

Therefore, we use the linear depreciation and we get is 17222.22.