Tasty subs acquired a delivery truck on october 1, 2018, for $19,500. the company estimates a residual value of $2,100 and a six-year service life.

The question is calculating the depreciation expense using straight-line method for 2018 and 2019?

Depreciation expenses for 2018: $725;

Depreciation expenses for 2019: $2,900.

Explanation:

We have yearly depreciation expenses is calculated as:

Yearly Depreciation expense = (Original cost - Salvage value) / Useful life = (19,500 - 2,100) /6 = $2,900.

For 2019, depreciation expense is recorded for the full-year at $2,900.

For 2018, depreciation expense is recorded for only three months ( as delivery truck was bought on Oct 1st 2018), which is calculated as: Yearly Depreciation expense / 12 * 3 = $725.

So, the answer is:

Depreciation expenses for 2018: $725;

Depreciation expenses for 2019: $2,900.

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-lavira : )

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough