acce

posted by Anonymous

A car was purchased for $10,000 with a salvage value of $4000. It is expected to have a useful life of 5 years. Using the sum-of-years method, find the car's value in the first year after the purchase.

  1. Reed

    The car is expected to decrease in value $6,ooo in five years (10,000 - 4,000). How much is that per year? Then subtract the yearly depreciation from the purchase price to find the value at the end of the first year.

Respond to this Question

First Name

Your Answer

Similar Questions

  1. finance

    Your company is considering a replacement of an old delivery van with a new one that is more efficient. The old van cost $30,000 when it was purchased 5 years ago. The old van is being depreciated using the simplified straight line …
  2. Accounting

    Your company is considering a replacement of an old delivery van with a new one that is more efficient. The old van cost $30,000 when it was purchased 5 years ago. The old van is being depreciated using the simplified straight line …
  3. Accounting

    I am trying to figure out if I am doing this accounting problem correctly?
  4. Finance

    Your company is considering a replacement of an old delivery van with a new one that is more efficient. The old van cost $30,000 when it was purchased 5 years ago. The old van is being depreciated using the simplified straight line …
  5. programming

    3. Your company needs to depreciate its assets. The accountant wants to record the purchase price, the useful life, and the estimated salvage value. Your program should be able to depreciate by the straight-line method. For example, …
  6. Algebra

    Three years after purchase, a car is estimated to be worth $24,000. At five years, its value is $19,000. If the car is depreciating in a linear manner, write an equation that represents the depreciation of the car. Answer the following …
  7. accounting

    A light truck is purchased on January 1 at a cost of $27,000. It is expected to serve for eight years and have a salvage value of $3,000. Calculate the depreciation expense for the first and third years of the truck's life using the …
  8. Computer Science

    You want to buy a new car, and you are thinking about two alternatives, car A and car B. You like both cars, and you are considering keeping whichever one you buy for many years to come. As a result, you want to evaluate the total …
  9. Computer Science

    You want to buy a new car, and you are thinking about two alternatives, car A and car B. You like both cars, and you are considering keeping whichever one you buy for many years to come. As a result, you want to evaluate the total …
  10. financial managment

    Inventory and Depreciation Concepts Assume that an organization purchased two pieces of equipment on April 1st (the first day of its fiscal year), as follows: (1) One laboratory equipment that cost $530,000 and has an expected life …

More Similar Questions