Question
John Morse Corporation buys a van for $16,000. The estimated life of the van is 4 years. The residual value of the van is $4,000.
John Morse Corporation buys a van for $16,000. The estimated life of the van is 4 years. The residual value of the van is $4,000. After 2 years, the van has been sold for $8,000. What was the difference between the book value and the amount received from selling the van if John used the straight-line method of depreciation?
| A. | None of the Choices | |
| B. | $4000 difference | |
| C. | $8000 difference | |
| D. | $3000 difference | |
| E. | $2000 difference |
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Fundamentals Of Investments
Authors: Charles J. Corrado
3rd Edition
0072829192, 978-0072829198
