Charterhouse Services Purchased a Van on January 1,2012,for $56,000

question 32

Multiple Choice

Charterhouse Services purchased a van on January 1,2012,for $56,000.It has an estimated life of 5 years,and an estimated salvage value of $6,000.Charterhouse uses straight-line depreciation.At the end of 2013,Charterhouse revised the estimated life of the asset from 5 years to 6 years.How much was the depreciation expense in the year 2014?

• A) $12,000
• B) $6,000
• C) $9,000
• D) $7,500

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Definitions:

Gastropods

A class of mollusks that includes snails and slugs, characterized by their univalve shell (in snails) and distinctive crawling locomotion.

Hinged Shell

A shell structure composed of two parts connected by a flexible hinge, allowing the shell to open and close, commonly seen in bivalves like clams and oysters.

Bivalves

Aquatic molluscs that have a shell divided into two hinged parts, such as clams, oysters, mussels, and scallops.

Tubular Gut

A digestive system design where the gut forms a continuous tube through which food travels from mouth to anus.