Edelweiss Tours purchased a new tour bus for $36,000. Shipping charges were $1,800 and other costs associated with the bus amounted to $620. The bus is expected to last 4 years and has a residual value of $4,000. Lion elects to use the straight-line method of depreciation.
A)What is the amount of total depreciation?
B)What is the amount of the annual depreciation?

Question

Quizplus · Accepted Answer

The Answer of Edelweiss Tours purchased a new tour bus for $36,000. Shipping charges were $1,800 and other costs associated with the bus amounted to $620. The bus is expected to last 4 years and has a residual value of $4,000. Lion elects to use the straight-line method of depreciation.

Edelweiss Tours Purchased a New Tour Bus for $36,000