Iverycoast Inc

question 82

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 4 years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for the year 2017.

• A)$220,000
• B)$213,000
• C)$145,000
• D)$250,000

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Definitions:

Delegate Duties

The act of assigning specific responsibilities or tasks from one person to another, often in a workplace or organizational setting.

Agency Termination

The act of ending the relationship between an agent and their principal, which can occur through mutual agreement, fulfillment of the agency's purpose, or other legal means.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, which leads a third party to believe that an agent has authority to act.

Actual Notice

Knowledge actually possessed by a person, as opposed to knowledge assumed or implied by law.