Brevard Corporation Purchased a Taxicab on January 1 2021 for $34000

question 98

Multiple Choice

Brevard Corporation purchased a taxicab on January 1 2021 for $34000 to use for its shuttle business.The cab is expected to have a five-year useful life and no salvage value.During 2022 it retouched the cab's paint at a cost of $1600 replaced the transmission for $4000 (which extended its life by an additional 2 years) and tuned-up the engine for $200.If Brevard Corporation uses straight-line depreciation what annual depreciation will Brevard report for 2022?

• A)$6800.
• B)$5200.
• C)$5500.
• D)$5467.

---

Definitions:

Tourist Income

Revenue generated by a country or region from visitors who travel there from other areas, spending on accommodations, attractions, and other services.

Hawaiian Landowners

Individuals or entities that own land in Hawaii, often facing unique challenges and opportunities due to the state's specific legal and economic context.

Rental Price

The amount of money paid by a tenant to a landlord for the use of rental property, such as an apartment, house, or commercial space, for a specified period.

Labor Market

The supply of and demand for labor, where employment levels and wages are determined.