a certain car was purchased for $26,600. the car has a resale value of $17,900 after a useful life of 6…
a certain car was purchased for $26,600. the car has a resale value of $17,900 after a useful life of 6 years. what is the annual depreciation expense for this car? annual depreciation expense = $?
Answer
Explanation:
Step1: Calculate total depreciation
Total depreciation = Purchase - Resale value $26600 - 17900=8700$
Step2: Calculate annual depreciation
Annual depreciation = Total depreciation / Useful - life years $\frac{8700}{6}=1450$
Answer:
$1450$