Question

Anita purchased a golf cart for her soccer field maintenance business. The cart cost $8,999 and has a useful life of 5 years. Its salvage value is $1,100.

Anita can write off (Q1)___ on the cart’s value. Based on the cart’s cost and useful life, she can write off an amount of $(Q2)___.

Q1: A. depreciation
B. revenue

Q2: A. 1,579,80
B. 1,799.90

Answer 1

Q1:A. depreciation

Q2: B. 1,799.90

Explanation:

In order to solve this, you have to remember that the depreciation is the amount of money that is lost onthe cost or price of certain products with the pass of the time, and after that you just divide the cost by the number of years of useful life that it will have for the company, in this example it is $8,999 between 5 years and that is $1799 per year of useful life.