Use the following information to answer the given question, \(\begin{array}{c|c} & N\\ \hline \text{Purchase price of equipment} & 60,000\\ \text{Freight an...

The straight-line method of depreciation is a method of allocating the cost of an asset over its useful life. The annual depreciation charge under this method is calculated as follows: Depreciation Expense = (Purchase Price - Scrap Value) / Estimated Useful Life Using the given information, we have: Depreciation Expense = (60,000 + 10,000 - 2,000) / 5 Depreciation Expense = 68,000 / 5 Depreciation Expense = 13,600 Therefore, the annual depreciation charge under the straight-line method is N13,000 (rounded to the nearest whole number). Option (b) is the correct answer.