select the correct answer. juanita purchased a forklift for $23,000 to move materials in her warehouse. the…

select the correct answer. juanita purchased a forklift for $23,000 to move materials in her warehouse. the salvage value of the forklift is $3,150, and its useful life is 10 years. how much will juanita write off as a depreciation expense each year for the forklift? a. $1,323 b. $1,895 c. $1,985 d. $2,615

select the correct answer. juanita purchased a forklift for $23,000 to move materials in her warehouse. the salvage value of the forklift is $3,150, and its useful life is 10 years. how much will juanita write off as a depreciation expense each year for the forklift? a. $1,323 b. $1,895 c. $1,985 d. $2,615

Answer

Explanation:

Step1: Calculate depreciable cost

Depreciable cost = Purchase price - Salvage value. So, $23000 - 3150=19850$.

Step2: Calculate annual depreciation

Annual depreciation = Depreciable cost / Useful - life. So, $\frac{19850}{10}=1985$.

Answer:

C. $1,985