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CVN corp. has a car they have used for two years for their supervisor to drive. They paid $32,000 for the car with the plan
CVN corp. has a car they have used for two years for their supervisor to drive. They paid $32,000 for the car with the plan of driving it for 8 years and then donating it to charity (that is, scrapping it with no expected salvage value). However, at the beginning of the third year the supervisor has told them she hates the car and it makes her back hurt. They have asked her to drive it for one more year, they they will sell it. They expect to be able to sell it for $15,000. How much depreciation will they recognize for year 3?
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