a certain car was purchased for $32,000. the car has a resale value of $26,000 after a useful life of 6…

a certain car was purchased for $32,000. the car has a resale value of $26,000 after a useful life of 6 years. what is the annual depreciation expense for this car? annual depreciation expense = $?

a certain car was purchased for $32,000. the car has a resale value of $26,000 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. So, $32000 - 26000=6000$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life years. So, $\frac{6000}{6}=1000$.

Answer:

$1000$