a certain car was purchased for $21,000. the car has a resale value of $15,750 after a useful life of 6…

a certain car was purchased for $21,000. the car has a resale value of $15,750 after a useful life of 6 years. what is the annual depreciation expense for this car? annual depreciation expense = $?

a certain car was purchased for $21,000. the car has a resale value of $15,750 after a useful life of 6 years. what is the annual depreciation expense for this car? annual depreciation expense = $?

Answer

Explanation:

Step1: Calculate total depreciation

Total depreciation = Purchase - Resale value. So, $21000 - 15750=5250$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years. So, $\frac{5250}{6}=875$.

Answer:

$875$