a company needs to purchase new service trucks to expand its business. the trucks have a total purchase…

a company needs to purchase new service trucks to expand its business. the trucks have a total purchase price of $102,500. they have a useful life of 7 years at which point they will have a combined value of $22,000. complete the sentence describing the calculations for the straight - line depreciation of this investment. round to the nearest dollar when necessary. using the initial value $ and the salvage value of $, the common difference is $

a company needs to purchase new service trucks to expand its business. the trucks have a total purchase price of $102,500. they have a useful life of 7 years at which point they will have a combined value of $22,000. complete the sentence describing the calculations for the straight - line depreciation of this investment. round to the nearest dollar when necessary. using the initial value $ and the salvage value of $, the common difference is $

Answer

Explanation:

Step1: Identify initial and salvage values

Initial value is $102500$, salvage value is $22000$.

Step2: Calculate depreciation amount

The total depreciation amount is the difference between the initial value and the salvage value. So, $102500 - 22000=80500$.

Step3: Calculate annual depreciation (common - difference)

The useful life is 7 years. To find the annual depreciation (common - difference in the context of straight - line depreciation), we divide the total depreciation amount by the useful life. So, $\frac{80500}{7}=11500$.

Answer:

Using the initial value $102500$ and the salvage value of $22000$, the common difference is $11500$.