Trin’s Freight purchased a new shipping truck on August 1, 2008, for $27,000. The truck is estimated to last for six years and will then be sold, at which time it should be worth nothing. The company uses straight-line depreciation and has a fiscal year end of July 31.
1. How much depreciation expense will be shown on the income statement for the year ended July 31, 2010?
2. What is the book value (also called carrying value) of the truck on the balance sheet for each of the six years beginning with July 31, 2008?

  • CreatedSeptember 01, 2014
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