All insurance is based on a principle called a. division of risk. b. investment premiums. c. cash value coverage. d. premium earnings.

The amount of accumulated depreciation at December 31, 2023 is $6,375

Explanation:

Sheridan Company uses the straight-line depreciation, Depreciation Expense each year is calculated by following formula:  

Annual Depreciation Expense = (Cost of delivery truck − Salvage Value)/Useful Life = ($36,000-$2,000)/8 = $4,250

Depreciation Expense in 2022 = ($4,250/12) x 6 = $2,125

Depreciation Expense in 2023 = $4,250

Accumulated depreciation at December 31, 2023 = Depreciation Expense in 2022 + Depreciation Expense in 2023 = $2,125 + $4,250 = $6,375