Garrett Deliveries purchases a truck for $18,000. The truck has an estimated salvage value of $4,000 and

Question:

Garrett Deliveries purchases a truck for $18,000. The truck has an estimated of $4,000 and is expected to be driven for seven years. Garrett uses the straight-line method of depreciation.
Required
Calculate annual depreciation expense.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...