The term you are looking for is glass cliff
<h2>Answer</h2>
Depreciation expense = $3500
<h2>Explanation</h2>
The van's purchase price = $45,000
It's salvage value = $3,000
<em>Subtract the salvage value from the purchase price to find the depreciable cost.</em>
Depreciation value = 45,000 - 3000
= $42000
<em>Divide the depreciable cost by the asset's lifespan to get the depreciation.</em>
Depreciation = Depreciation value / useful life
= 42000 / 6
= $7000 per year
from July 1 - dec 31 =6 months
= 7000/2 (12/6 = half year)
= $3500
<h2>Depreciation expense = $3500</h2>
