A company purchased a new delivery van at a cost of $44,000 on July 1. The delivery van is estimated to have a useful life of 5 years and a salvage value of $3,200. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31? ___ $3,840 ___ $4,080 ___ $4,720 ___ $8,160

Principles of Accounting Volume 1
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ISBN:9781947172685
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Chapter11: Long-term Assets
Section: Chapter Questions
Problem 3EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...
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A company purchased a new delivery van at a cost of $44,000 on July 1. The delivery van is estimated to have a useful life of 5 years and a salvage value of $3,200. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?

___ $3,840

___ $4,080

___ $4,720

___ $8,160

Expert Solution
Introduction :

Using straight line method of depreciation :-

Depreciation expense = ( Cost of asset - Salvage value ) / Useful life of asset

Date of purchase of Delivery Van = July 1

Date of year end = December 31

 

 

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