Exhibit 1.5.1 The following financial statements are to be used to answer the following questions:

-Refer to Exhibit 1.5-1. If trucks are depreciated over ten years with no residual value, how many years has Jane Austin Bookstore had this truck?
A) 1 year
B) 6 years
C) 9 years
D) 10 years

Question

Exhibit 1.5.1 The following financial statements are to be used to answer the following questions:
  
-Refer to Exhibit 1.5-1. If trucks are depreciated over ten years with no residual value, how many years has Jane Austin Bookstore had this truck?
A) 1 year 
B) 6 years 
C) 9 years 
D) 10 years

Quizplus · Accepted Answer

The total accumulated depreciation for trucks is $45,000. If we divide this by the annual depreciation expense for trucks, we get $45,000 ÷ $5,000 = 9. This means the trucks have been owned by the company for 9 years.

Exhibit 15