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Sagot :
Answer:
The depreciation expenses will be "950 and 3610". A further explanation is given below.
Explanation:
The given values are:
Cost,
= $21,500
Salvage value,
= $2,500
Asset's total life,
= $100,000
Now,
The Depreciation rate will be:
= [tex]\frac{ (Cost - Salvage \ value) }{Asset's \ total \ life}[/tex]
On putting the values, we get
= [tex]\frac{ (21500 - 2500) }{100000}[/tex]
= [tex]\frac{19000}{100000}[/tex]
= [tex]0.19[/tex]
So,
For the year 2021, the depreciation expense will be:
= [tex]Depreciation \ Rate\times Actual \ Mileage[/tex]
= [tex]0.19\times 5000[/tex]
= [tex]950[/tex]
For the year 2022, the depreciation expense will be:
= [tex]Depreciation \ Rate\times Actual \ Mileage[/tex]
= [tex]0.19\times 19000[/tex]
= [tex]3610[/tex]
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