If a vehicle was purchased for $6,500 and has a residual value of $500,the annual depreciation expense will be $1,000 if the estimated useful life is
A)6 years.
B)6.5 years.
C)7 years.
D)13 years.

Question

Quizplus · Accepted Answer

The annual depreciation expense is calculated by subtracting the residual value from the purchase price and then dividing by the useful life. ($6,500 - $500) / 6 = $1,000.

If a Vehicle Was Purchased for $6,500 and Has a Residual