Joseph Company purchased a delivery van on January 1,Year 1 for $35,000.The van is estimated to have a 5-year useful life and a $5,000 salvage value.How much expense should Joseph recognize in Year 1 related to the use of the van?
A)$6,000
B)$7,000
C)$30,000
D)$5,000

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost of $35,000 - Salvage value of $5,000)÷ Useful life of five years = $6,000

Joseph Company Purchased a Delivery Van on January 1,Year 1