It estimates that the salvage value will be $2,000 and the asset's useful life, five years. The depreciation expense per year would be $4,600. ($25,000 - $2,000)/5 = $4,600 The accumulated ...

Here are some examples on both end of the depreciation spectrum. Vehicles lose 20% of their value in the first year of ownership, and retain just 40% of their original value after five years.