Hsu Company purchased a truck on May 31, 2012 for $70,000.The equipment has an estimated useful life of five years.What amount will appear on Hsu Company's balance sheet for total accumulated depreciation at May 31, 2015?

Question

Quizplus · Accepted Answer

Depreciation per year = $70,000 / 5 years = $14,000 per year
Accumulated depreciation as of May 31, 2015 = 3 years * $14,000 per year = $42,000. Therefore, the correct answer is C.

Hsu Company Purchased a Truck on May 31, 2012 for $70,000.The