ABC Ltd. has a fleet of trucks and records depreciation for the trucks using the straight-line method.
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ABC Ltd. has a fleet of trucks and records depreciation for the trucks using the straight-line method. The company purchased a new truck on January 1, 2022, for $50,000 with an estimated useful life of 5 years and a salvage value of $5,000. On January 1, 2023, the company determined that the useful life of the truck was actually 4 years instead of 5 years. Calculate the depreciation expense for the truck for the years 2022 and 2023 and the carrying value of the truck at the end of 2023.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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