Joe purchased a van on February 1, 2017, for use in his business, Crew Airport Transport. The

Question:

Joe purchased a van on February 1, 2017, for use in his business, Crew Airport Transport. The van was purchased for $30,000, has an estimated useful life of 10 years, and has a salvage value of $2,000. No other assets were put into service that year. What is Joe’s MACRS depreciation for the van for 2017?

a. $2,567

b. $6,000

c. $10,500

d. $10,267

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...