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Edelweiss Tours purchased a new tour bus for $36,000. Shipping charges were $1,800 and other costs associated with the bus amounted to $620. The bus
Edelweiss Tours purchased a new tour bus for $36,000. Shipping charges were $1,800 and other costs associated with the bus amounted to $620. The bus is expected to last 4 years and has a residual value of $4,000. Lion elects to use the straight-line method of depreciation.
a. | What is the amount of total depreciation? |
b. | What is the amount of the annual depreciation? |
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