Red Enterprises purchased a vehicle for $35 000. A further $5000 was spent to prepare it for use. The useful life of the vehicle is expected to be 15 years, but Red Enterprises expects to replace it with a better model in 7 years' time. The salvage value is estimated to be $6500 after 15 years and $15 000 at the end of 7 years. What is the depreciation for the first 2 years using the declining-balance method of depreciation (rounded to the nearest dollar)?

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The Answer of Red Enterprises purchased a vehicle for $35 000. A further $5000 was spent to prepare it for use. The useful life of the vehicle is expected to be 15 years, but Red Enterprises expects to replace it with a better model in 7 years' time. The salvage value is estimated to be $6500 after 15 years and $15 000 at the end of 7 years. What is the depreciation for the first 2 years using the declining-balance method of depreciation (rounded to the nearest dollar)?

Red Enterprises Purchased a Vehicle for $35 000