Tudor's Deli and Catering could have sold their delivery van on December 31, 2010 for $16,000. If they could sell the same van on December 31, 2011 for $13,000, then the economic depreciation in 2011 for this van
A) is $29,000.
B) is $13,000.
C) is $16,000.
D) is $3,000.

Question

Quizplus · Accepted Answer

The economic depreciation is calculated as the difference in value from the beginning to the end of the year. Therefore, it is $16,000 (value at the end of 2010) - $13,000 (value at the end of 2011) = $3,000.

Tudor's Deli and Catering Could Have Sold Their Delivery Van