On January 1,2010,Wasson Company purchased a delivery vehicle costing $40,000.The vehicle has an estimated 6-year life and a $4,000 residual value.What is the vehicle's book value as of December 31,2011 assuming Wasson uses the straight-line depreciation method?

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Quizplus · Accepted Answer

Annual straight-line depreciation expense ($6,000) = ($40,000 - $4,000) F1F1F1S1F1F1F10 6December 31, 2011 book value ($28,000) = $40,000 - ($6,000 F1F1F1S1F1F1F10 2)

On January 1,2010,Wasson Company Purchased a Delivery Vehicle Costing $40,000