Royal Company purchased a dump truck in early 2015 at a cost of $60,000. The truck had an estimated life of six years and an estimated salvage value of $24,000. On January 1, 2016, the company made over $20,000 in repairs to the truck that extended the life by one year. Therefore, as of 2017, the truck has a remaining useful life of five years and a new salvage value of $8,000. Royal uses the straight-line depreciation method. 

What is the book value of the truck that will be reported on the balance sheet as of December 31, 2017?

Answer rating: 100% (QA)

To calculate the book value of the truck on the balance sheet as of December 31 2017 we need to dete... View the full answer