Apex Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2010 The truck is expected to have a salvage value of $4,000 at the end of its 5 year useful life Compute annual depreciation for the first and second years using the straight line method ...

The depreciable cost is 27000 31000 4000 With ...

Apex Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2010. The

Question:

Apex Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2010. The truck is expected to have a of $4,000 at the end of its 5-year useful life. Compute annual depreciation for the first and second years using the straight-line method.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...