Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 24)
A delivery van was purchased for $40,000. It has an estimated useful life of 5 years and a salvage value of $5,000. Using the straight-line method, what is the annual depreciation expense?
$7,000
$8,000
$35,000
$40,000
Explanation
($40,000 - $5,000) / 5 = $7,000
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