Ask Question
10 November, 01:28

Sheboygan Co. purchased a new vehicle at a cost of $42,000 on July 1. The vehicle is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the vehicle during the first year ended December 31?

+4
Answers (1)
  1. 10 November, 01:47
    0
    The depreciation at the end of first year = $3250

    Explanation:

    The cost of a new vehicle on July 1st = $42000

    The estimated useful life of vehicle = 6 years

    The salvage value of vehicle = $3000

    It is given that the company uses the straight-line method for depreciation so we have to calculate the depreciation by subtracting the salvage value from its cost and dividing by years.

    Depreciation = ($42000 - $3000) / 6 = $6500

    So annual depreciation is $6500.

    Therefore depreciation at the end of the first yThe depreciation at the end of first year = $3250ear that is for 6 months = $3250
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sheboygan Co. purchased a new vehicle at a cost of $42,000 on July 1. The vehicle is estimated to have a useful life of 6 years and a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers