Robert purchased a truck for $50,000 with a residual value of $20,000 and a life expectancy of 5 years;using straight-line depreciation,the amount of the depreciation adjustment for the first year would be:
A)$5,000.
B)$6,000.
C)$6,400.
D)$4,000.

Question

Quizplus · Accepted Answer

Straight-line depreciation is calculated as (Cost - Residual Value) / Useful Life. 
In this case, it would be ($50,000 - $20,000) / 5, which equals $6,000. Therefore, the correct answer is option B.

Robert Purchased a Truck for $50,000 with a Residual Value