Question
Calloway shoes purchased a delivery truck on september 30,2011 for 32,000. the estimates useful life of the truck is 10 years with no residual value.
Calloway shoes purchased a delivery truck on september 30,2011 for 32,000. the estimates useful life of the truck is 10 years with no residual value. After five years, the refrigeration unit will need to be replaced. The $8,000 cost of the unit is included in the cost of the truck. Calloway uses the straight-line depreciation method. Depreciation for 2011 under U.S GAAP and Internal Financial Reporting Standards (IFRS) respectively, is
U.S GAAP IFRS
a.$3,200 $3,200
b.$800 $800
c.$800 $1,000
d.$3,200 $4,000
A. option d
B. option b
C. option c
D. option a
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