Annual straight-line depreciation of a delivery van

Transaction

On January 1 two years ago, a company bought a delivery van for $25,500.00. Its useful life is 5 years and its salvage value is $3,000.00. Record this year's depreciation on December 31.

Assumptions: Depreciation is accumulated in Accumulated Depreciation. Straight-line depreciation: the cost minus the salvage value is spread evenly over the useful life.