Author Question: Dawn bought a van at the beginning of the year for 24,000. The van has an estimated life of 8 years ... (Read 139 times)

torybrooks · **on:** Jun 24, 2018

Dawn bought a van at the beginning of the year for 24,000. The van has an estimated life of 8 years and a salvage value of 5,500 at the end of the 8-year period. What is the depreciation using the straight-line method?

Question 2

The original cost of a Jeep was 35,000 with an estimated life of 5 years. What is the end-of-year book value?

jamesnevil303 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

2,312.50;
24,000 - 5,500 = 18,500
18,500 8 = 2,312.50

Answer to Question 2

21,000;
100 5 = 20
20 2 = 40
35,000 40 = 35,000 0.4 = 14,000
35,000 - 14,000 = 21,000