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
I hope this is correct?? On 1 January 2008, a new motor vehicle with a useful...
On September 1, a company purchased a vehicle for $28,000 with a residual value of $2,000. The estimated useful life is 10 years and the company uses the straight-line method. What is the depreciation expense for the year ended December 31? Multiple Choice 5867 O $650 O O $2,600 Multiple Choice $867 $650 оооо $2.600 $933
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