G a company purchased a delivery van for $28,000 with a salvage value of $3,000 on september 1, year 1. it has an estimated useful life of 5 years. using the straight-line method, how much depreciation expense should the company recognize on december 31, year 1?

Question

Phoebe Stout

Business

21 January, 02:12

G a company purchased a delivery van for $28,000 with a salvage value of $3,000 on september 1, year 1. it has an estimated useful life of 5 years. using the straight-line method, how much depreciation expense should the company recognize on december 31, year 1?

+3

Answers (1)

Know the Answer?

Escobar · Answer 1

Hi there

First find the rate of depreciation

100/estimated useful life

100/5years=20%

You should subtract the salvage value from the cost of the van

28000-3000=25000

Second the time from september 1 to

december 31 is 4months

Now find the depreciation expenses

25,000*0.20 * (4:12)

=1,666.67 round your answer to get

1667 is the answer

Good luck!