Tidy Limited Purchased a New Van on January 1, 2016

question 36

Multiple Choice

Tidy Limited purchased a new van on January 1, 2016.The van cost $20,000.It has an estimated life of five years and the estimated residual value is $5,000.Tidy uses the double-declining-balance method to compute depreciation.
-Use the information above to answer the following question.What is the depreciation expense for 2016?

• A) $4,000
• B) $3,000
• C) $6,000
• D) $8,000

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