Question
Avionic solutions buys a new truck for $250,000. The directors expect the machine to have a useful life within the company of 10 years and
Avionic solutions buys a new truck for $250,000. The directors expect the machine to have a useful life within the company of 10 years and to have a value of Zero at the end of those 10 years. An equal amount of depreciation on the new truck is to be provided in each of the 10 years of useful life. What is the accumulated depreciation and the carrying amount of the new truck after it has been in operation for four years?
a) $50,000 accumulated depreciation, $200,000 carrying amount
b) $75,000 accumulated depreciation, $175,000 carrying amount
c) $100,000 accumulated depreciation, $150,000 carrying amount
d) $125,000 accumulated depreciation, $125,000 carrying amount
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