Escape Room Company purchased a Tesla Model X SUV for the company president on June 1, 2020 for $75,000. The automobile is expected to have a useful life of 3 year or 120,000 miles. The trade in value (salvage value) at the end of the useful is expected to be $15,000. The automobile will be driven 25,000 miles in 2020, 40,000 miles in 2021, 32,000 miles in 2022, and 23,000 miles in 2023.

Straight-Line Depreciation

Round all amounts to the nearest dollar.

1. Compute annual depreciation:

2. Months owned in 2020 =

3. Compute depreciation expense for the period June 1 through December 31, 2020
4. Compute depreciation expense for 2021
5. Compute depreciation expense for 2022
6. Compute depreciation expense for the period January 1 through May 31, 2023