Charterhouse Services purchased a van on January 1,2012,for $56,000.It has an estimated life of 5 years,and an estimated salvage value of $6,000.Dawson uses straight-line depreciation.At the end of 2014,Charterhouse revised the estimated life of the asset from 5 years to 8 years.How much was the depreciation expense in the year 2015?

Question

Quizplus · Accepted Answer

B) Calculations: [($56,000 - $6,000)/5] × 3 = $30,000
($56,000 - $30,000 - $6,000)/5 = $4,000

Charterhouse Services Purchased a Van on January 1,2012,for $56,000