Question
17-18. Lena Horn bought Toyota Tundra on January 1 for $30,000 with an estimated life of 5 years. The residual value of the truck is
17-18. Lena Horn bought Toyota Tundra on January 1 for $30,000 with an estimated life of 5 years. The residual value of the truck is $5,000. Assume a straight-line method of depreciation. (a) What will be the book value of the truck at the end of year 4? (b) If the Tundra was bought the first year on April 12, how much depreciation would be taken the first year?
Problem 17-18: Calculate the book value at the end of year 4and depreciation taken the first year.
a) Cost______- Residual Value______ / Years ______ = Depreciation Expense______
Cost______ - (Depreciation Expense * ______ # years Depreciated) = Book Value $_____
b)Depreciation Expense______*(# Months Owned 1st Year / Months Per Year ) = Depreciation 1st Year _____
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