On January 1, Year 1, Friedman Company purchased a truck that cost $48,000. The truck had an expected useful life of 8 years and an $8,000 salvage value. The book value of the truck at the end of Year 1, assuming that Friedman uses the double-declining-balance method, is:

Question

Quizplus · Accepted Answer

$48,000 × (2 × 12.5%) = $12,000 Depreciation expense for Year 1; $48,000 - $12,000 = $36,000 book value at the end of Year 1

On January 1, Year 1, Friedman Company Purchased a Truck