Hi there, I am having a lot of trouble this this question on my study guide for my financial accounting exam. Could someone help me solve this, steps included would be great. **NOTE** These is no specified depreciation method indicated in the instructions, I'm assuming that any way to figure out the problem is acceptable.
Carole's Delivery service purchased a van on October 1, 2003, to deliver parcels for local merchants. Carloe estimates that the van will last four years and can be sold for $2,000 at the end of the fourth year.
A. For accrual basis accounting, how much will Carole recognize as depreciation expense for each of the calendar years 2003, 2005 and 2007 if the cost of the van was
1. $26,000?
2. $34,000?
B. What will be the balance of Accumulated Depreciation on December 31, 2003, 2005, and 2007 is the cost of the van was:
1. $26,000
2. $34,000
Carole's Delivery service purchased a van on October 1, 2003, to deliver parcels for local merchants. Carloe estimates that the van will last four years and can be sold for $2,000 at the end of the fourth year.
A. For accrual basis accounting, how much will Carole recognize as depreciation expense for each of the calendar years 2003, 2005 and 2007 if the cost of the van was
1. $26,000?
2. $34,000?
B. What will be the balance of Accumulated Depreciation on December 31, 2003, 2005, and 2007 is the cost of the van was:
1. $26,000
2. $34,000