A company purchased a delivery van for $23,000 with a salvage value of $3,000 on September 1,Year 1.It has an estimated useful life of 5 years.Using the straight-line method,how much depreciation expense should the company recognize on December 31,Year 1?

Question

Quizplus · Accepted Answer

Depreciation Expense = (Cost - Salvage Value)/Est Useful Life * Length of Ownership
Depreciation Expense = ($23,000 - $3,000)/5 * 4/12; Depreciation Expense = $1,333

A Company Purchased a Delivery Van for $23,000 with a Salvage