A company purchased a delivery van for $18,500 with a salvage value of $2,900 on

Question

A company purchased a delivery van for $18,500 with a salvage value of $2,900 on September 1, Year 1. It has an estimated useful life of 4 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1?

A.) $1,542.

B.) $3,900.

C.) $1,300.

D.) $4,625.

E.) $975.

A company purchased a delivery van for $18,500 with a salvage value of $2,900 on September 1, Year 1. It has an estimated useful life of 4 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1?

Explanation / Answer

Depreciation expense=Asset value-Salvage value/Useful life

=$18500-$2900/4

=$3900

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.