A piece of property was purchased on January 1, 2021, for BWP225,000. It is estimated to have a residual value of BWP16,000 at the end of its 10-year useful life. Calculate the annual depreciation exp

The formula for straight-line depreciation is:

$$\text{Annual Depreciation Expense} = \frac{\text{Cost} - \text{Residual Value}}{\text{Useful Life}}$$

Given:
Cost = BWP225,000
Residual Value = BWP16,000
Useful Life = 10 years

Substitute the values into the formula:

$$\text{Annual Depreciation Expense} = \frac{\text{BWP}225,000 - \text{BWP}16,000}{10 \text{ years}}$$ $$\text{Annual Depreciation Expense} = \frac{\text{BWP}209,000}{10 \text{ years}}$$ $$\text{Annual Depreciation Expense} = \text{BWP}20,900 \text{ per year}$$

Since the asset was purchased on January 1, 2021, and the straight-line method results in a constant depreciation expense each year, the annual depreciation for both years will be the same.

For the year ended 31/12/2021:

$$\text{Depreciation Expense} = \text{BWP}20,900$$

For the year ended 31/12/2022:

$$\text{Depreciation Expense} = \text{BWP}20,900$$

The annual depreciation expense for the piece of property for the two years ended 31/12/2021 and 31/12/2022 is:
For 31/12/2021: $\boxed{\text{BWP}20,900}$
For 31/12/2022: $\boxed{\text{BWP}20,900}$