question 3 of 5 select the correct answer. donovan knows that the useful life of the computer he has…

question 3 of 5 select the correct answer. donovan knows that the useful life of the computer he has purchased is 5 years. he bought the computer for $5,500. its salvage value is $800. how much can donovan write off as a depreciation expense each year? $550 $800 $940 $1,100

question 3 of 5 select the correct answer. donovan knows that the useful life of the computer he has purchased is 5 years. he bought the computer for $5,500. its salvage value is $800. how much can donovan write off as a depreciation expense each year? $550 $800 $940 $1,100

Answer

Explanation:

Step1: Calculate total depreciation

Total depreciation = Purchase price - Salvage value. So, $5500 - 800=4700$.

Step2: Calculate annual depreciation

Annual depreciation = Total depreciation / Useful - life. So, $\frac{4700}{5}=940$.

Answer:

$940$ (corresponding to the third option)