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

question 116

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.Dawson uses straight-line depreciation.At the end of 2014,Charterhouse revised the estimated life of the asset from 5 years to 8 years.How much was the depreciation expense in the year 2015?

• A) $5,000
• B) $4,000
• C) $6,000
• D) $5,600

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Definitions:

Ocean Liner

A large ship designed for long-distance voyages, typically carrying passengers in comfort and style across oceans.

Cookies

Small, sweet baked treats usually made from flour, sugar, and some type of oil or fat, and may include other ingredients such as chocolate chips or nuts.

Batch

A collection or group of goods or items that are processed or produced at the same time.

Daughters

Female offspring in relation to their parents.