a certain car was purchased for $24,200. the car has a resale value of $19,200 after a useful life of 8…

a certain car was purchased for $24,200. the car has a resale value of $19,200 after a useful life of 8 years. what is the annual depreciation expense for this car? annual depreciation expense = $? round to the nearest hundredth.

a certain car was purchased for $24,200. the car has a resale value of $19,200 after a useful life of 8 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, $24200 - 19200=5000$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years. So, $\frac{5000}{8}=625$.

Answer:

$625.00$