Danny's Delivery Service Purchased a Delivery Van for $30,000

question 28

Multiple Choice

Danny's Delivery Service purchased a delivery van for $30,000.The van had an estimated useful life of six years and an estimated residual value of $6,000.After four years of use,the total estimated useful life is revised to seven years.Assuming straight-line depreciation,depreciation expense in year 5 would be

• A) $2,667.
• B) $4,667.
• C) $2,000.
• D) $1,143.

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Definitions:

Technological Improvements

Enhancements and innovations in technology that increase productivity and efficiency in the production of goods and services.

Additional Resources

Extra materials, finances, or personnel added to assist in the achievement of objectives.

Marginal Rate

The rate at which a certain quantity changes with respect to a change in another quantity, often used in the context of tax or interest.

Transformation

The process of changing or converting from one form, state, or system to another, applicable in various contexts such as business, technology, and personal development.