a certain car was purchased for $30,400. the car has a resale value of $26,600 after a useful life of 5…

a certain car was purchased for $30,400. the car has a resale value of $26,600 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 $30,400. the car has a resale value of $26,600 after a useful life of 5 years. what is the annual depreciation expense for this car? annual depreciation expense = $?

Answer

Explanation:

Step1: Find total depreciation

Total depreciation = Purchase - Resale value. So, $30400 - 26600=3800$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years. So, $\frac{3800}{5}=760$.

Answer:

$760$