Brevard Corporation purchased a taxicab on January 1, 2021 for $34,000 to use for its shuttle business.The cab is expected to have a five-year useful life and no salvage value.During 2022, it retouched the cab's paint at a cost of $1,600, replaced the transmission for $4,000 (which extended its life by an additional 2 years), and tuned-up the engine for $200.If Brevard Corporation uses straight-line depreciation, what amount of annual depreciation will Brevard report for 2022?
A)$6,800
B)$5,200
C)$5,500
D)$5,467

Question

Quizplus · Accepted Answer

The Answer of Brevard Corporation purchased a taxicab on January 1, 2021 for $34,000 to use for its shuttle business.The cab is expected to have a five-year useful life and no salvage value.During 2022, it retouched the cab's paint at a cost of $1,600, replaced the transmission for $4,000 (which extended its life by an additional 2 years), and tuned-up the engine for $200.If Brevard Corporation uses straight-line depreciation, what amount of annual depreciation will Brevard report for 2022?
A)$6,800
B)$5,200
C)$5,500
D)$5,467

Brevard Corporation Purchased a Taxicab on January 1, 2021 for $34,000