Claxton Company Purchased a Van on January 1,2018,for $820,000

question 15

Multiple Choice

Claxton Company purchased a van on January 1,2018,for $820,000.Estimated life of the van was five years,and its estimated residual value was $103,000.Claxton uses the straight-line method of depreciation.At the beginning of 2020,the company revised the total estimated life of the asset from five years to four years.The estimated residual value remained the same as estimated earlier.Calculate the depreciation expense for 2020.

• A) $266,600
• B) $215,100
• C) $107,550
• D) $133,300

---

Definitions:

REM Activity

Rapid Eye Movement activity; a phase of sleep characterized by quick movements of the eyes, dream occurrences, and increased brain activity.

Placebo Effects

Positive changes in a person's condition after receiving a treatment with no therapeutic effect, due to their belief in the treatment's efficacy.

Slow-Wave Sleep

A deep sleep stage characterized by slow brain waves, known as delta waves, which is associated with physical and mental restoration.

Sleep Problems

Issues related to sleeping, such as difficulty falling or staying asleep, which can affect overall health and well-being.