a certain car was purchased for $11,700. the car has a resale value of $7,800 after a useful life of 5…

a certain car was purchased for $11,700. the car has a resale value of $7,800 after a useful life of 5 years. what is the annual depreciation expense for this car? annual depreciation expense = $?

a certain car was purchased for $11,700. the car has a resale value of $7,800 after a useful life of 5 years. what is the annual depreciation expense for this car? annual depreciation expense = $?

Answer

Explanation:

Step1: Calculate total depreciation

Total depreciation = Purchase price - Resale value. So, $11700 - 7800$. $11700 - 7800=3900$

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life in years. So, $3900\div5$. $3900\div5 = 780$

Answer:

$780$