a certain car was purchased for $21,100. the car has a resale value of $13,500 after a useful life of 8…

a certain car was purchased for $21,100. the car has a resale value of $13,500 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 $21,100. the car has a resale value of $13,500 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 - Resale value. So, $21100 - 13500=7600$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years. So, $\frac{7600}{8}=950$.

Answer:

$950$