Farr Company Purchased a New Van for Floral Deliveries on January

question 189

Multiple Choice

Farr Company purchased a new van for floral deliveries on January 1 2017. The van cost $56000 with an estimated life of 5 years and $14000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the depreciation expense for 2017?

• A) $11200
• B) $8400
• C) $16800
• D) $22400

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Definitions:

Albinism

A genetic disorder characterized by a lack of melanin pigment in the skin, hair, and eyes, resulting in a very pale appearance and sensitivity to sunlight.

Melanin

A pigment that gives human skin, hair, and eyes their color and offers protection against UV radiation.

Keratin

A type of structural protein that is a key component of the skin, hair, nails, and the outer layer of cells.

Protein

Large biological molecules, or macromolecules, consisting of one or more long chains of amino acid residues, functioning in various roles within organisms.