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Business, 29.12.2021 09:30 nataliellamas56

ABC Company on Jan 1, 2021 purchased a delivery van for $22,000. To complete the purchase, the company also incurred a $800 shipping cost and $1,200 sales tax. The company estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 100,000 miles. Actual miles driven each year were 20,000 miles in year 1; 25,000 miles in year 2; 39,000 miles in year 3; and 55,000 miles in year 4. Required:

Using Straight-line depreciation method, what is the annual depreciation expense?
A) $5,000
B) $4,500
C) $5,500
D) $4,800

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ABC Company on Jan 1, 2021 purchased a delivery van for $22,000. To complete the purchase, the compa...
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