(c) Identify situations where income could be recognised earlier in the cycle and also where it should not be recognised until later in the cycle.

new truck for his cattle and hay hauling business.
Costs incurred are as indicated below:
Dealer charge $240,000 Installation of GPS, safety devices, etc $3,360 Delivery charges $2,400 Import taxes $4,800 Fuel cost (first fill-up) $500 Murph estimates a useful life for the truck of 10 years, at which time it could be sold for $20,000 he reckons. Murph’s plan, however, is to upgrade to a new model in two years. He estimates resale value in two years to be $100,000.
Calculate Murph’s straight-line depreciation expense for the current year.