A trucking company purchased a tractor-trailer for $150,000 to support its short-haul business. The tractor-trailer will be in service for 5 years before it will be sold at $55,000. With annual fuel costs estimated at $12,000, what is the annual depreciation for the vehicle?

Question

Quizplus · Accepted Answer

The annual depreciation is calculated by subtracting the salvage value from the purchase price and then dividing by the number of years in service: ($150,000 - $55,000) / 5 = $19,000.

A Trucking Company Purchased a Tractor-Trailer for $150,000 to Support