a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5…

a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5 years. what is the annual depreciation expense for this car? annual depreciation expense = $? round to the nearest hundredth

a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5 years. what is the annual depreciation expense for this car? annual depreciation expense = $? round to the nearest hundredth

Answer

Explanation:

Step1: Calculate total depreciation

Total depreciation = Purchase price - Resale value $19400 - 14750=4650$

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years $\frac{4650}{5}=930.00$

Answer:

$930.00$