A company purchased a delivery van for $34,000 with a salvage value of $4,000 on september 1, year 1. it has an estimated useful life of 6 years. using the straight-line method, how much depreciation expense should the company recognize on december 31, year 1?

$1,666.67

Explanation:

Depreciation under the straight-line method is constant throughout the use-life of an asset.

Depreciation is calculated by first obtaining the depreciable amount

= cost of the asset - residual value

=$34,000 -$4000

=$30,000

Depreciation rate = 1/6 x 100

=16.66 percent

Depreciation per year

=  16.67/100 x 30,000

= $5,000

Depreciation per year is = $5000

During year 1, the van operated for four months( Sept, Oct, Nov, and Dec.)

Depreciation for the four months = 4/12 x 5000

=$1,666.67

answer; specific performance;

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