Carrier Company buys a truck costing $15,000. It is expected to last for 8 years but to be traded-in after 4 years for a newer model (the trade-in allowance is estimated at $3,000). Which of the following is correct?

Multiple Choice

None of the other statements are correct

The truck will be depreciated over 8 years

The trade in allowance is not part of the depreciation calculation in calculating the annual provision

The truck will be depreciated over 4 years

The truck will be depreciated at one rate the first 4 years and at a different rate the remaining 4 years