00:02
Hello, in this video we're going to solve for the depreciation expense for the year ended december 31.
00:08
So on september 1, the company purchased a vehicle for 43 ,000 with a residual value of 6 ,000.
00:16
So to solve for a depreciation expense, all you need to do is to subtract your salvage value from the cost of the equipment.
00:34
Or in this problem, the vehicle cost of or the purchase cost or the cost of the vehicle.
00:49
Subtract from it, the salvage value and divide it by the useful life of the vehicle.
01:01
So in the problem, we are given a cost of 43 ,000 with 6 ,000 salvage value.
01:12
And it is also stated in the problem that it has a useful life of five years.
01:19
And this is actually the formula for depreciation expense using or under the straight line method...