# A delivery van was bought for $18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be$2,000. Required Prepare a depreciation schedule for the four-year period using the straight-line method. Check Figure Year 1 depreciation, $4,000 BuyFind ### College Accounting (Book Only): A ... 13th Edition Scott + 1 other Publisher: South-Western College Pub ISBN: 9781337280570 BuyFind ### College Accounting (Book Only): A ... 13th Edition Scott + 1 other Publisher: South-Western College Pub ISBN: 9781337280570 #### Solutions Chapter A, Problem 1P Textbook Problem ## A delivery van was bought for$18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be $2,000.RequiredPrepare a depreciation schedule for the four-year period using the straight-line method.Check FigureYear 1 depreciation,$4,000

Expert Solution
To determine

Prepare depreciation schedule for the four year estimated useful life of the delivery van under straight-line depreciation method.

### Explanation of Solution

Straight-line method: The depreciation method which assumes that the consumption of economic benefits of long-term asset could be distributed equally throughout the useful life of the asset, is referred to as straight-line method.

Formula for straight-line depreciation method:

DepreciationÂ expense=â€‰â€‰CostÂ ofÂ assetâ€“Trade-inÂ valueâ€‰YeasrÂ inÂ life

Prepare depreciation schedule for the four year estimated useful life of the delivery van under straight-line depreciation method, if cost of the asset is $18,000 and trade-in value is$2,000.

Table (1)

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## Chapter A Solutions

College Accounting (Book Only): A Career Approach

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