A Company Purchased a Delivery Van for $28,000 with a Salvage

question 153

Multiple Choice

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?

• A)$5,000.
• B)$1,667.
• C)$1,400.
• D)$1,250.
• E)$2,067.