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. $1,885 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. $1,885 c. $1,985 d. $2,615

Answer

Explanation:

Step1: Calculate depreciable amount

The depreciable amount is the cost of the asset minus its salvage value. Cost of forklift is $23,000 and salvage value is $3,150. So, depreciable amount = $23000 - $3150=$19850$.

Step2: Calculate annual depreciation

The useful life of the forklift is 10 years. Annual depreciation = $\frac{\text{Depreciable amount}}{\text{Useful life}}=\frac{19850}{10} = 1985$.

Answer:

C. $1,985