SOLUTION: Use the following information to answer the question: Cost of car: $26,000 Residual value: $6,000 Life: 5 years With the information given, determine the depreciation e

Question 1131182: Use the following information to answer the question:
Cost of car: $26,000
Residual value: $6,000
Life: 5 years
With the information given, determine the depreciation expense for the first year using the straight-line method.

A. $4,400
B. $5,200
C. $4,000
D. $6,000
Answer by greenestamps(13203) (Show Source): You can put this solution on YOUR website!

The car loses $20,000 in value in 5 years; that is $4000 per year -- for every year including the first.

Answer C
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