a certain car was purchased for $14,900. the car has a resale value of $9,300 after a useful life of 8…

a certain car was purchased for $14,900. the car has a resale value of $9,300 after a useful life of 8 years. what is the annual depreciation expense for this car? annual depreciation expense = $?

a certain car was purchased for $14,900. the car has a resale value of $9,300 after a useful life of 8 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, $14900 - 9300=5600$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years. So, $\frac{5600}{8}=700$.

Answer:

$700$