Talarico's Subs purchased a new van for $28,000,its estimated useful life at 100,000 miles,residual value of $4,000.The van was driven 12,000 miles in year 1.What is the depreciation expense in year 1?

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Quizplus · Accepted Answer

Depreciation expense = (Cost - Residual value) / Useful life= (28,000 - 4,000) / 100,000= 24,000 / 100,000= 0.24= 0.24 * 12,000= $2,880

Talarico's Subs Purchased a New Van for $28,000,its Estimated Useful