Joseph Company purchased a delivery van on January 1,2016 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 2016 related to the use of the van?

Question

Quizplus · Accepted Answer

The expense recognized is the annual depreciation. Using straight-line depreciation: (Cost - Salvage Value) / Useful Life = ($35,000 - $5,000) / 5 = $6,000 per year.

Joseph Company Purchased a Delivery Van on January 1,2016 for $35,000.The