a certain car was purchased for $22,500. the car has a resale value of $14,500 after a useful life of 5…

a certain car was purchased for $22,500. the car has a resale value of $14,500 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 $22,500. the car has a resale value of $14,500 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 - Resale value $22500 - 14500=8000$

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years $\frac{8000}{5}=1600$

Answer:

$1600$