Question

Lynch Company owns and operates a delivery van that originally cost $46,400. Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this van. Compute the net book value of the van on the disposal date.

Name: lynch company owns and operates a delivery van that originally cost 46400 lynch has recorded straight line depreciation on the van for four years calculated assuming a 5000 expected salvage 69972
Uploaded: 2022-05-11T20:18:12-08:00
Duration: 1 min 25 s
Channel: Rachel Gore
Description: lynch company owns and operates a delivery van that originally cost 46400 lynch has recorded straight line depreciation on the van for four years calculated assuming a 5000 expected salvage 69972

          Lynch Company owns and operates a delivery van that originally cost $46,400. Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this van. Compute the net book value of the van on the disposal date.

Added by Jeremy J.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Rachel Gore

05/11/2022

Step 1

Given: - Original cost of the van = $46,400 - Expected salvage value = $5,000 - Useful life = 6 years Depreciation per year = (Cost - Salvage Value) / Useful Life Depreciation per year = ($46,400 - $5,000) / 6 Depreciation per year = $41,400 / 6 Depreciation per Show more…

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Lynch Company owns and operates a delivery van that originally cost $46,400. Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this van. Compute the net book value of the van on the disposal date.