A company purchased a van at a cost of $42,000 and expects its salvage value to be $6,000 after 120,000 kilometres of service. Using the units-of-production method, what is the first year's depreciation if the van is driven 24,000 kilometres?

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The Answer of A company purchased a van at a cost of $42,000 and expects its salvage value to be $6,000 after 120,000 kilometres of service. Using the units-of-production method, what is the first year's depreciation if the van is driven 24,000 kilometres?

A Company Purchased a Van at a Cost of $42,000