Answer:
The new bus is rolling stock asset
depreciation is $8,000
Explanation:
Rolling stock asset in the U.S is a conveyance vehicle such a buses,vans ,locomotives,ferryboats and so on.
annual depreciation =(cost-salvage value)/useful life
cost of the new bus is $95,000
salvage value is $15,000
useful life is 10 years
yearly depreciation charge =($95,000-$15,000)/10 years
=$8,000
Note that the $10,000 trade-in value is relevant when computing the cash payable to the car dealer,it is not deducted here since it forms part of asset cost.
