Question

Select the correct answer from the drop-down menu. Amit runs a delivery service. He has purchased a delivery van and plans to deduct the depreciation on his taxes. The van has a useful life of 12 years and a salvage value of $3,300. Amit paid $22,000 for the van. The depreciation expense that Amit can write off per year is .

Answer 1

Answer:

$1,558.33

Step-by-step explanation:

Subtract the salvage value from the original purchase price:

$22,000 − $3,300 = $18,700.

Divide $18,700 by the useful life of the van:

depreciation expenses =  ≈ $1,558.33 per year.