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 = $? round to the nearest hundredth.

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 = $? round to the nearest hundredth.

Answer

Explanation:

Step1: Calculate total depreciation

Total depreciation = Purchase - Resale value. So, $23300 - 13325=9975$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life. So, $\frac{9975}{7}\approx1425$.

Answer:

$1425.00$