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Matthew also owns a truck that he purchased three years ago. He plants to depreciate it over 6 years. At the time of purchase, he
Matthew also owns a truck that he purchased three years ago. He plants to depreciate it over 6 years. At the time of purchase, he believed he would be able to resell the truck for $10,000. He still thinks that is correct (that is about what 6 years old trucks are selling for now). However, his current bookvalue is $18,000 and he was surprised to see that similar trucks are only selling for $16,000. How much additional depreciation expense should Matthew take this year? Assume he uses straight line depreciation
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