Revision ofDepreciation

A truck with a cost of $82,000 has an estimatedresidual valueof $16,000, has an estimated useful life of 12 years, and is depreciated by thestraight-line method.

a.Determine the amount of the annual depreciation.

b.Determine thebook valueat the end of the seventh year of use.

c.Assuming that at the start of the eighth year the remaining life is estimated to be six years and the residual value is estimated to be $12,000, determine the depreciation expense for each of the remaining six years.