Union Company purchased a delivery van at a cost of $30,000 cash on January 1, 2014. The van has an estimated useful life of 6 years and a $6,000 estimated residual value.
A. What is the effect on the accounting equation of the purchase of the van?
B. How much depreciation expense should be reported for 2015?
C. What is the total amount of accumulated depreciation at December 31, 2015?

Question

Union Company purchased a delivery van at a cost of $30,000 cash on January 1, 2014. The van has an estimated useful life of 6 years and a $6,000 estimated residual value.
A. What is the effect on the accounting equation of the purchase of the van?
  B. How much depreciation expense should be reported for 2015?
C. What is the total amount of accumulated depreciation at December 31, 2015?

Quizplus · Accepted Answer

The Answer of Union Company purchased a delivery van at a cost of $30,000 cash on January 1, 2014. The van has an estimated useful life of 6 years and a $6,000 estimated residual value.
A. What is the effect on the accounting equation of the purchase of the van?
  B. How much depreciation expense should be reported for 2015?
C. What is the total amount of accumulated depreciation at December 31, 2015?

Union Company Purchased a Delivery Van at a Cost of $30,000