Question
HIJ Inc. purchases a truck for $32,000 on January 1st, 2019. The vehicle is estimated to have a useful life of 15 years, at which
HIJ Inc. purchases a truck for $32,000 on January 1st, 2019. The vehicle is estimated to have a useful life of 15 years, at which point it will have a residual value of $2,000. HIJ Inc. uses the straight-line method to account for depreciation. What is the accumulated depreciation and book value respectively in 8 years?
Select one:
a.Accumulated depreciation: $14,000; book value: $18,000.
b.Accumulated depreciation: $15,000; book value: $17,000.
c.Accumulated depreciation: $16,000; book value: $16,000.
d.Accumulated depreciation: $18,000; book value: $12,000.
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