Davida's Delivery Service purchased a delivery van for $30,000.The van had an estimated useful life of six years and an estimated residual value of $6,000.After four years of use,the total estimated useful life is revised to seven years.Assuming straight-line depreciation,depreciation expense in year 5 would be (amounts rounded)

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The correct answer is A because the depreciation expense for year 5 would be $2,667. This is calculated by taking the cost of the van ($30,000) minus the residual value ($6,000) and dividing by the revised estimated useful life (7 years). This gives us an annual depreciation expense of $3,429. To find the depreciation expense for year 5, we multiply the annual depreciation expense by the number of years of use (5 years). This gives us a depreciation expense of $2,667.

Davida's Delivery Service Purchased a Delivery Van for $30,000