What is the correct depreciation charge

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Problem 1: You disagree with "Honest " Abe. a car salesperson, on the price of a car lease. He claims the depreciation charge is $6,000. Yet the car, now worth $28,000 is expected to be $20,000 at the end of the lease term. What is the correct depreciation charge?

option 1: 7,000

option 2: 7,500

option 3: 8,000

option 4: 20,000

Reference no: EM132841485

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