ment CALCULATOR FULL SCREEN PRINTER VERS Brief Exercise 94 Y

ment CALCULATOR FULL SCREEN PRINTER VERS Brief Exercise 9-4 Your answer is incorrect. Try again Gordon Chemicals Company acquires a delivery truck at a cost of $27,200 on January 1, 2017. The truck is expected to have a salvage value of $4,300 at the end of its 5-year useful life. Compute annual depreciation for the first and second years using the straight-line method. (Round answers to o decimal places, e.9. 125.) First Year Second Year Annual depreciation under straight-line method 10880 4533 LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Question Attempts: Unlimited SAVE FOR LATE

Solution

Answer

depreciation per year = cost - residual value / useful life

= 27200 - 4300 / 5

= 4580

annual depreciation of first and second year = 4580