To calculate the annual depreciation expense for Donovan's computer, we can use the straight-line depreciation method.
1. **Determine the cost of the computer**: $5,500
2. **Determine the salvage value**: $800
3. **Determine the useful life**: 5 years
The formula for straight-line depreciation is:
\[
\text{Annual Depreciation Expense} = \frac{\text{Cost} - \text{Salvage Value}}{\text{Useful Life}}
\]
Plugging in the numbers:
\[
\text{Annual