David purchases a delivery truck at the beginning of the year for $18000 and determines depreciation will be $3,000 each year. During the year, David incurs $280 to change the truck tire and incurs an additional $2500 for improvements that will increase the truck's loading capacity. Calculate the total amount that will be reflected as expenses for the year and on which financial statement Explain.

Answer rating: 100% (QA)

The total amount reflected as expenses for the year would comprise depreciation cost of the tire cha... View the full answer