Hsu Company purchased a truck on May 31, 2013 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, 2016?

Question

Quizplus · Accepted Answer

- The depreciation expense for the truck each year can be calculated using the straight-line method: 
$70,000 (cost) / 5 (useful life) = $14,000 per year
- To find the accumulated depreciation for May 31, 2016 (after 3 years), we multiply the annual depreciation expense by the number of years: 
$14,000 x 3 = $42,000
- Therefore, the answer is C) $42,000.

Hsu Company Purchased a Truck on May 31, 2013 for $70,000.The