Best Construction purchased a delivery truck on June 1, 2021. The following information is available:

Best Construction purchased a delivery truck on June 1, 2021. The following information is available:


Cost = $90,000

Estimated service life = 5 years

Estimated residual value = $15,000


Calculate depreciation expense for the year ended December 31, 2021, using straight-line depreciation.



A) $8,750.

B) $15,000.

C) $6,250.

D) $18,000.


Answer: A


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