Howe Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2014 The truck is expected to have a salvage value of $4,000 at the end of its 4 year useful life Compute annual depreciation for the first and second years using the straight line method ...

Cost of truck 31000 Salvage value 4000 Useful life 4 years Depreciable cost cost ...

Howe Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2014. The

Question:

Howe Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2014. The truck is expected to have a of $4,000 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method.

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...