The truck is estimated to have a adjectives life of 6 years and a salvage pro of $3,000. How much depreciation expense will be recorded for the truck for the year terminated December 31, 2004?
Answers: $42,000 - $3000 = $39,000
$39000 / 6 yrs = $6500/yr
$6500.
That's assuming straight line over the adjectives life of the asset. There are other methods which could be more accurate and this method is not available for US income due.
I am assuming SL dep.
Cost - SV = Basis for Dep. Calc.
42,000 - 3,000 = 39,000 Basis for Dep.
39,000/6 = $6,500 annual depreciation
For Dec. 31, 2004 you would record 6500 of Depreciation.
DR: Dep. exp. 6,500
CR: Acc. Dep. 6,500
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Answers: $42,000 - $3000 = $39,000
$39000 / 6 yrs = $6500/yr
$6500.
That's assuming straight line over the adjectives life of the asset. There are other methods which could be more accurate and this method is not available for US income due.
Anybody please help out beside Finance!?
I am assuming SL dep.
Cost - SV = Basis for Dep. Calc.
42,000 - 3,000 = 39,000 Basis for Dep.
39,000/6 = $6,500 annual depreciation
For Dec. 31, 2004 you would record 6500 of Depreciation.
DR: Dep. exp. 6,500
CR: Acc. Dep. 6,500
Resolved Questions: