Hsu Company purchased a truck on May 31,2014 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 31,2017?

Question

Quizplus · Accepted Answer

The annual depreciation for the truck can be calculated as $70,000 / 5 = $14,000. Since the truck was purchased on May 31, 2014, it has been in use for three years as of May 31, 2017. Therefore, the total accumulated depreciation at May 31, 2017 would be $14,000 x 3 = $42,000. So, the best choice is C.

Hsu Company Purchased a Truck on May 31,2014 for $70,000