How much annual depreciation expense would be recognized for a truck that originally cost $30,000 and has an estimated useful life of 5 years with a $5,000 salvage value? 1 point$5,000$7,000 $10,000 $6,000 $3,333
Question
How much annual depreciation expense would be recognized for a truck that originally cost 5,000 salvage value? 1 point7,000 6,000 $3,333
Solution
To calculate the annual depreciation expense, you need to follow these steps:
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Determine the cost of the asset. In this case, the cost of the truck is $30,000.
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Determine the salvage value of the asset. In this case, the salvage value of the truck is $5,000.
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Determine the useful life of the asset. In this case, the useful life of the truck is 5 years.
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Subtract the salvage value from the cost of the asset. This gives you the total depreciation over the asset's useful life. In this case, 5,000 = $25,000.
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Divide the total depreciation by the useful life of the asset. This gives you the annual depreciation expense. In this case, 5,000.
So, the annual depreciation expense for the truck would be $5,000.
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