Cullen's Catering Owns a Delivery Van Which It Depreciates Applying

question 105

Essay

Cullen's Catering owns a delivery van which it depreciates applying the units-of-output method (units-of-production method). The original cost of the van was $58,000. When it was purchased in July of 2019, it was estimated that it would be driven for 125,000 miles over four years and then sold for an expected salvage value of $2,000. During 2019 the van was driven 16,240 miles. What is the depreciation expense for 2019? (Round final answer to the nearest whole dollar.)

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Definitions:

Perspire

The process of sweating, or secreting fluid from the sweat glands of the skin, which helps to regulate body temperature.

Arousal Theory

A theory in psychology that suggests people are motivated to maintain an optimal level of arousal, neither too high nor too low.

Drive-Reduction Theory

A theory in psychology that explains motivation as being based on the goal of eliminating uncomfortable states.

Boredom

A state of mind characterized by a perceived lack of interest in one's surroundings, leading to feelings of frustration or disengagement.