Houlihan, Inc purchased a van on January 1, 2016, for $800,000
Estimated life of the van was five years, and its estimated residual value was $90,000. Houlihan uses the straight-line method of depreciation. Give the journal entry to record the depreciation expense for 2016 on the van.
What will be an ideal response
Depreciation Expense—Van 142,000
Accumulated Depreciation—Van 142,000 .Depreciation per year = (Cost - Residual value) / Useful life
Depreciation per year = ($800,000 - 90,000 ) / 5 = $142,000
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