The blooming miracles flower shop bought a delivery van on january 1, 2019.the van cost $18,000 and had an expected salvage value of $3,000. the life of the van was estimated to be five years or 150,000 miles. using the straight-line method of depreciation, the book value of the van at the beginning of the third year would be

12000

Explanation:

Straight-line method of Depreciation =     Cost - Salvage value

              Year 1                                                 useful life

Depreciation year 1 =                        18000-3000

                                                               5years

Depreciation Year 1 =15000÷5

dep year 1 = 3000 , ( in straight line method depreciation remains constant in all the years)

Net Book Value year 1 = (18000-3000) = 15000

Dep Year 2 = 3000 , NBV= (15000-3000) = 12000

Beginning of ?Year 3 NBV = 12000

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