The Cardiel Car Company purchased a passenger van to use to transport customers when they leave their cars for repairs. If the van is expected to last $7$ years and costs $$56,000,$ what effect would that have on income on the accrual basis each year?

Select one:

a$.$ The van$$s cost would need to be amortized$/$depreciated to recognize an expense of $$8,000($$$56,000/7)$ in each year.

b$.$ No effect.

c$.$ The van$$s cost would need to be amortized$/$depreciated to recognize an expense equal to $$10,000$ each year.

d$.$ Both the van and depreciation would be reduced by $$8,000$ each year.