Homework Answers
Cost of motor vehicle = $54,000
Estimated residual value = $12,000
Depreciation expense = (Cost - Residual value) / useful life
Depreciation expense = ($54,000 - $12,000) / 4 = $10,500
Depreciation expense = $10,500
Period between 1/1/2018 - 31/12/2020 = 3 years
Accumulated depreciation as on December 31, 2020 = $10,500*3 = $31,500
So, Accumulated depreciation = $31,500
Option '2' is correct
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