a certain car was purchased for $29,600. the car has a resale value of $17,700 after a useful life of 7…

a certain car was purchased for $29,600. the car has a resale value of $17,700 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 $29,600. the car has a resale value of $17,700 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. So, it is $29600 - 17700=11900$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years. So, it is $\frac{11900}{7}=1700$.

Answer:

$1700$