Trins Freight purchased a new shipping truck on August 1, 2008, for $27,000. The truck is estimated

Question:

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 for each of the six years beginning with July 31, 2008?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...