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Haliburton Bakery acquires a delivery truck for $ 8 0 0 0 0 and anticipates using it for eight years, at which time it will
Haliburton Bakery acquires a delivery truck for $ and anticipates using it for eight years, at which time it will have logged kilometres. Currently, market conditions suggest that a used truck with kilometres on the odometer sells for $ The company anticipates using the truck for about the same amount each year and therefore believes that the straightline method is appropriate. After using and depreciating the truck for three years, management believes that the truck will remain useful for a total of years, after which the residual value will be $ Compute the amount of depreciation in the third and fourth years.
Haliburton
Bakery acquires a delivery truck for $
and anticipates using it for eight years, at which time it will have logged kilometres. Currently, market conditions suggest that a used truck with kilometres on the odometer sells for $
The company anticipates using the truck for about the same amount each year and therefore believes that the straightline method is appropriate. After using and depreciating the truck for three years, management believes that the truck will remain useful for a total of years, after which the residual value will be $ Compute the amount of depreciation in the third and fourth years.
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