The depreciation charge for a 5 year, straight line depreciated vehicle is $3000 in year 4 If the first cost was $20,000, the salvage value used in the depreciation calculation was closest to (a) $0 (b) $2500 (c) $5000 (d) $7500 ...

Answer Option c is the correct answer Explanation Given data life of asset n 5 years Firstinitial ...

The depreciation charge for a 5-year, straight line depreciated vehicle is $3000 in year 4. If the

Question:

The depreciation charge for a 5-year, straight line depreciated vehicle is $3000 in year 4. If the first cost was $20,000, the used in the depreciation calculation was closest to:
(a) $0
(b) $2500
(c) $5000
(d) $7500

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...