a certain car was purchased for $28,500. the car has a resale value of $17,500 after a useful life of 5…

a certain car was purchased for $28,500. the car has a resale value of $17,500 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 $28,500. the car has a resale value of $17,500 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 price - Resale value $28500 - 17500=11000$

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years $\frac{11000}{5}=2200$

Answer:

$2200$