Iverycoast Inc

question 52

Multiple Choice

Iverycoast Inc. purchased a van on January 1, 2015, for $800,000. Estimated life of the van was 5 years, and its estimated residual value was $90,000. Iverycoast uses the straight-line method of depreciation. At the beginning of 2017, the company revised the total estimated life of the asset from 5 years to 6 years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for the year 2017.

• A)$142,000
• B)$145,000
• C)$106,500
• D)$110,000

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Definitions:

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, such as grains, gold, oil, and natural gas.

American West

A region of the United States that has been defined in various ways, often characterized by its history of westward expansion, frontier life, and significant cultural and geographical diversity.

Cities

Cities are large human settlements that are significant centers of population, culture, commerce, and political activities.

Indian Boarding Houses

Institutions established primarily in the United States during the 19th and early 20th centuries designed to assimilate Native American children into Euro-American culture.