Question
CNS Community Pharmacy purchased a delivery van having the following characteristics: Cost $32,900 Estimated useful life (years) 5 Residual value $6,400 Estimated miles of use
CNS Community Pharmacy purchased a delivery van having the following characteristics:
| Cost | $32,900 |
| Estimated useful life (years) | 5 |
| Residual value | $6,400 |
| Estimated miles of use during useful life | 265,000 |
| Miles of use during year 1 | 66,250 |
Assume the pharmacy uses the straight-line method of depreciation. Compute depreciation expense for year 1.
| $5,300 | ||
| $13,160 | ||
| $6,400 | ||
| $6,580 |
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Advanced Financial Accounting
Authors: Theodore Christensen, David Cottrell, Cassy Budd
12th Edition
1260165116, 9781260165111
