Question

On January 1 of the current year, the company purchased a new hauling van at a cash cost of 38,000. Depreciation estimated at3,800 for the year has not been recorded for the current year. What is the total cost of the hauling van after considering depreciation?

1) $34,200
2) $38,000
3) $41,800
4) $42,200

Answer 1

The total cost of the hauling van after considering depreciation is $34,200.

Step-by-step explanation:

The total cost of the hauling van after considering depreciation can be calculated by subtracting the depreciation amount from the original cost of the van. In this case, the original cost of the van is $38,000 and the depreciation is estimated at $3,800 for the year. Therefore, the total cost of the hauling van after considering depreciation would be $38,000 - $3,800 = $34,200.