Question
The CPP Co. aquired a semi-truck on Jan. 1, YR1 at a cost of 216,000. The trucks had a seix year useful life and estimated
The CPP Co. aquired a semi-truck on Jan. 1, YR1 at a cost of 216,000. The trucks had a seix year useful life and estimated salvage value of $24,000. The straight line method of depreciation was used. On january 1, YR4 CPP revised its estimate of the trucks useful life and determined that it would be in the total use for total of 11 years from the date of the aquisition. Furthermore the estimated salvage value of the truck The CPP Co. aquired a semi-truck on Jan. 1, YR1 at a cost of 216,000. The trucks had a seix year useful life and estimated salvage value of $20,000. Firms fiscal year end is dec. 31.
1. what is the annual depreciation expense until dec 31 YR3?
2. what is the book value of the truck on dec 31 YR3?
3. what is cpp YR4 depreciation expense? 4. if on may 1 YR 4, in addition to revising the estimated of useful life and salvage value, CPP spent 12,000 for rountine maintenance on the truck, what would be cpp' s YR4 depreciation?
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