Question

What us the annual depreciation expense using straight-line depreciation, of a vehicle that depreciates over 5 years, was purchased at $17000, and will have a salvage value of $2000 – Students must show their working.

Answer 1

Answer:

3,000

Explanation:

Annual depreciation under straight line method = $\frac{Cost - Salvage value}{Useful life}$

= $\frac{17,000 - 2,000}{5}$

= 3,000