Question
4 Rivers BBQ purchased a truck for $44,000 on 1/1 in Year 1. The truck is expected to have a five-year life or last 100,000
4 Rivers BBQ purchased a truck for $44,000 on 1/1 in Year 1. The truck is expected to have a five-year life or last 100,000 miles and have a residual value of $10,000. The truck was driven as follows for year 1 & 2:
- Year 1 - 11,000 miles
- Year 2 - 27,000 miles
If 4 Rivers BBQ uses activity based depreciation method, what will be the book value of the truck at the end of Year 2 on 12/31?
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
21st Edition
978-1259916984
