Acompany purchased a new delivery van at a cost of $59,000 on july 1. the delivery van is estimated to have a useful life of 5 years and a salvage value of $4,700. the company uses the straight-line method of depreciation. how much depreciation expense will be recorded for the van during the first year ended december 31?

Given Data:
Depreciation rate per year 1 / 5-year useful life = 20%
Salvage value = $4700
Purchase cost  = $59000

Step 1: Depreciable asset cost  = Purchase cost of – estimated salvage value

Depreciable asset cost = $59,000 – $4,700 
                                        = $54,300

Step 2: Annual depreciation = depreciation rate x depreciable asset cost

Annual depreciation = 20% x $59,000
                                   = $11,800

Therefore, depreciation expense recorded for the van during the first year ended December 31 is $11,800.

Givens

The company paus $55 a day for foor and lodging.They pay $0.45 for each mile traveled.

Notice that the variable must represents the traveled miles, because it variates. So, the expression would be

Where represents the amount of money and represents the number of miles traveled. Notice that $55 is the ratio of change of variable which represents days.

We know that and .

First, we replace the number of miles and the amount of money.

Second, we solve the product.

Third, we subtract 135 at each side of the equation.

Fourth, we divide by 55 each side of the equation.

Therefore, Rita spent 40 days on this trip.