On September 30, Hoagland Company purchased a $34,000 delivery truck. The company estimates the truck will last

Question:

On September 30, Hoagland Company purchased a $34,000 delivery truck. The company estimates the truck will last six years and have a salvage value of $4,000 at the end of six years. Using the straight-line method of depreciation, compute the amount of depreciation in the first two years of the truck’s service.

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...