A company acquired a vehicle for total cost of USD 20,000 and plans - ProProfs Discuss
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A company acquired a vehicle for total cost of USD 20,000 and plans to depreciate it over 4 years. The company assumes that after 4 years, vehicle will be sold for USD 1,000. Calculate the depreciation expense for the third year on a sum of years digit (SYD) basis.



A. 3800
B. 6000
C. 5700
D. 2375

This question is part of Financial Accounting Test 1
Asked by YassirDerbas, Last updated: Jan 27, 2020

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1 Answer

John Smith

John Smith

Answered Sep 26, 2016

3800

You have to consider the selling price as a salvage value and then calculate so: (20000 - 1000) 2/10 = 3800####
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