Week 11 - PPE (2)

A company purchased a delivery van for $23,000 with a residual value of $3,000 on September 1, Year 1. It has an estimated useful life of 5 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1?

• $1,000

• $1,333

• $1,533

• $4,000

Lomax Enterprises purchased a depreciable asset for $22,000 on March 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's residual value is $2,000, Lomax Enterprises should recognise depreciation expense in Year 2 in the amount of:

• $19,166.67

• $5,500.00

• $5,000.00

• $20,000.00

Lomax Enterprises purchased a depreciable asset for $22,000 on March 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's residual value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, Year 4?

• $5,000.00

• $4,166.67

• $16,666.68

• $19,166.67