Question

A company purchased a new delivery van at a cost of $60,000 on July 1. The delivery van is estimated to have a useful life of 6 years and a salvage value of $4,800. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?

Answer 1

Answer:

How much depreciation expense will be recorded for the van during the first year ended December 31?

$6900

Explanation:

60000 Cost    

6 Years    

4800 Salvage    

     

60000 4800 55200 6900 Year 1 6 months

                         13800 Year 2 1 year

                         13800 Year 3 1 year

                          13800 Year 4 1 year

                           6900 Year 5 6 months