Dawn bought a van at the beginning of the year for 24,000. The ...

[torybrooks]

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]

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

[torybrooks]

TYSM

[recede]

Thanks for the timely response, appreciate it