A truck with a cost of $82,000 has an estimated residual value of $16,000, has an estimated
Question:
A truck with a cost of $82,000 has an estimated residual value of $16,000, has an estimated useful life of 12 years, and is depreciated by the straight-line method.
(a) Determine the amount of the annual depreciation.
(b) Determine the book value at the end of the seventh year of use.
(c) Assuming that at the start of the eighth year the remaining life is estimated to be six years and the residual value is estimated to be $12,000, determine the depreciation expense for each of the remaining six years.
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a Cost 82000 Residual value 16000 Annual depreciation Cost Residual value 12 82000 16000 12 5500 ...View the full answer
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Related Book For 
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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