question 2 of 5 select the correct answer from the drop - down menu. amit runs a delivery service. he has…

question 2 of 5 select the correct answer from the drop - down menu. amit runs a delivery service. he has purchased a delivery van and plans to deduct the depreciation on his taxes. the van has a useful life of 12 years and a salvage value of $3,300. amit paid $22,000 for the van. the depreciation expense that amit can write off per year is

question 2 of 5 select the correct answer from the drop - down menu. amit runs a delivery service. he has purchased a delivery van and plans to deduct the depreciation on his taxes. the van has a useful life of 12 years and a salvage value of $3,300. amit paid $22,000 for the van. the depreciation expense that amit can write off per year is

Answer

Explanation:

Step1: Calculate depreciable cost

Depreciable cost = Purchase - Salvage Depreciable cost = $22000 - 3300=$18700$

Step2: Calculate annual depreciation

Annual depreciation = $\frac{\text{Depreciable cost}}{\text{Useful life}}$ Annual depreciation = $\frac{18700}{12}\approx$1558.33$

Answer:

$1558.33$