Red Enterprises purchased a vehicle for $$35000.$ A further $$5000$ was spent to prepare it for use. The useful life of the vehicle is expected to be $15$ years, but Red Enterprises expects to replace it with a better model in seven years' time. The salvage value is estimated to be $$6$$\mathrm{ 5}00$ after $15$ years and $$15000$ at the end of seven years. What is the depreciation for the first two years, using the declining$-$balance method of depreciation $($rounded to the nearest dollar$)?$

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To calculate the depreciation for the first two years using the decliningbalance method we need to d... View the full answer