It's three months before the end of the financial year and Leo Murphy, owner and operator of Murph's Trucking, has just purchased a new truck for his cattle and hay hauling business. Costs incurred are as indicated below: (Click the icon to view the costs incurred.) Leo estimates a useful life for the truck of 10 years, at which time it could be sold for $20,000, he reckons. Leo's plan, however, is to upgrade to a new model in two years. Leo estimates the resale value in two years to be $100,000. Requirements Requirement (a) Murph's straight-line depreciation expense for the current year is $ (Round to the nearest cent.) i X Requirements Requirement (b) Show how Murph's truck will appear on the balance sheet after 15 months use. (Round to the nearest cent.) a) Calculate Murph's straight-line depreciation expense for the current year. b) It's now the end of the next financial year after purchase of the new truck. That is, Murph's been using his new truck for 15 months. Nothing's changed, but now Leo wants to see how his truck will be shown on his balance sheet. Show how Leo's truck will appear on the balance sheet after 15 months use. Remember that he's using straight-line depreciation. Print Done It's three months before the end of the financial year and Leo Murphy, owner and operator of Murph's Trucking, has just purchased a new truck for his cattle and hay hauling business. Costs incurred are as indicated below: (Click the icon to view the costs incurred.) Leo estimates a useful life for the truck of 10 years, at which time it could be sold for $20,000, he reckons. Leo's plan, however, is to upgrade to a new model in two years. Leo estimates the resale value in two years to be $100,000. Requirements Requirement (a) Murph's straight-line depreciation expense for the current year is $ (Round to the nearest cent.) i X Requirements Requirement (b) Show how Murph's truck will appear on the balance sheet after 15 months use. (Round to the nearest cent.) a) Calculate Murph's straight-line depreciation expense for the current year. b) It's now the end of the next financial year after purchase of the new truck. That is, Murph's been using his new truck for 15 months. Nothing's changed, but now Leo wants to see how his truck will be shown on his balance sheet. Show how Leo's truck will appear on the balance sheet after 15 months use. Remember that he's using straight-line depreciation. Print Done