Question

a certain car was purchased for $14,900. the car has a resale value of $9,300 after a useful life of 8 years. what is the annual depreciation expense for this car? annual depreciation expense = $? round to the nearest hundredth.

Explanation:

Step1: Find total depreciation

Total depreciation = Purchase price - Resale value = $14900 - $9300 = $5600

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful life = $5600 / 8 = $700.00

Answer:

$700.00