Multiple Choice
Newson's Courier Service recently purchased a new delivery van for $29,000. The van is estimated to have a useful life of 8 years or 250,000 kilometres. The van will have a residual value of $1,000. The company uses the units-of-production method of depreciation. Assuming the van travelled 36,000 kms. during the first year, what is the depreciation expense for the van in year 1?
A) $4,176
B) $3,500
C) $4,032
D) $3,625
Correct Answer:
Verified
Correct Answer:
Verified
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