Question
Haddon Incorporated owns a delivery truck. The company purchased the truck on January 1, 2016 and put it into service on that date. The truck's
Haddon Incorporated owns a delivery truck. The company purchased the truck on January 1, 2016 and put it into service on that date. The truck's original acquisition cost was $12,000 and its annual deprecation is $1,000.
- What is balance of the Delivery truck account on December 31, 2017?
- What is the balance of the Accumulated depreciation account on December 31, 2017?
- What is the net book value of the delivery truck on December 31, 2017?
On January 1, 2018, Haddon spends $2,000 on the delivery truck to improve the trucks gas mileage. Additionally, the annual depreciation increases to $1,200.
- What is the balance of the Delivery truck account on December 31, 2018?
- What is the balance of the Accumulated depreciation account on December 31, 2018?
- What is the net book value of the delivery truck on December 31, 2018?
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Interpreting Company Reports And Accounts
Authors: Geoffrey Holmes, Alan Sugden, Paul Gee
10th Edition
0273711415, 9780273711414
