Question
LYO Community Pharmacy purchased a delivery van having the following characteristics: Cost $32,000 Estimated useful life (years) 5 Residual value $4,000 Estimated miles of use
LYO Community Pharmacy purchased a delivery van having the following characteristics:
| Cost | $32,000 |
| Estimated useful life (years) | 5 |
| Residual value | $4,000 |
| Estimated miles of use during useful life | 200,000 |
| Miles of use during year 1 | 54,000 |
Assume the pharmacy uses the units-of-activity method of depreciation. Compute depreciation expense for year 1.
| $28,000 | ||
| $103,704 | ||
| $7,560 | ||
| $8,640 |
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Interpreting and Analyzing Financial Statements
Authors: Karen P. Schoenebeck, Mark P. Holtzman
6th edition
978-0132746243
