Minneola company purchase 10 cars for $20000 each and the average expected service life 3 years with a residual value of $5000 each .Of those cars 3 are sold after 2 years for $800 each ,5 after 3 years for $6000 each and 2 after 4 years for $4800each .Minneola cumputes the depreciation rate as follows. depreciation=cost-residual value/life =$50000 (equals 25% of the cost of the assets)