Question

Erickson Electricity bought a utility truck for $70,000. The utility truck is expected to have an eight-year useful life and a salvage value of $6,000.
1. If Erickson sells the utility truck after four years for $40,000, would the company realize a gain or loss? How much? (Assume straight-line depreciation.)
2. What would the gain or loss be if the company sold the utility truck for $17,000 after six years?



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  • CreatedSeptember 01, 2014
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