Question
n December 31, 20x4, an entity purchased a truck at a cost of $160,000. The truck's useful life was estimated to be 8 years with
n December 31, 20x4, an entity purchased a truck at a cost of $160,000. The truck's useful life was estimated to be 8 years with a residual value of $20,000. The diminishing balance method at a rate of 25% was used in 20x5 and 20x6 since the entity est. nated that the truck would generate higher revenues early on in its useful life. In 20x7, given that the truck was generating revenues relatively evenly, the entity changed the method of depreciation to the straight line method. What is the accumulated depreciation on the truck at December 31, 20x7 a) $52,500 b) $81,667 c) $92,500 d) $68,571
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