a certain car was purchased for $23,300. the car has a resale value of $13,325 after a useful life of 7…

a certain car was purchased for $23,300. the car has a resale value of $13,325 after a useful life of 7 years. what is the annual depreciation expense for this car? annual depreciation expense = $?

a certain car was purchased for $23,300. the car has a resale value of $13,325 after a useful life of 7 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 $23300 - 13325$

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Number of years $\frac{23300 - 13325}{7}=\frac{9975}{7}$

Answer:

$1425$