On January 1 2010,Max,Inc.paid $80,000 for a truck with an estimated useful life of 10 years and a $20,000 salvage value.During 2013,Max,Inc.'s truck was not running very well.
Part A: Put an X in the appropriate box to show whether each item is an expense,a capital expenditure,or neither.

Part B:
1.Straight-line depreciation expense for 2012 is
$_____________________.
2.The book value of the machine at December 31,2012 is $___________________.
3.Straight-line depreciation expense for 2013,after the major overhaul,is $__________.

Question

On January 1 2010,Max,Inc.paid $80,000 for a truck with an estimated useful life of 10 years and a $20,000 salvage value.During 2013,Max,Inc.'s truck was not running very well.
Part A: Put an X in the appropriate box to show whether each item is an expense,a capital expenditure,or neither.
  
Part B:
1.Straight-line depreciation expense for 2012 is 
$_____________________.
2.The book value of the machine at December 31,2012 is $___________________.
3.Straight-line depreciation expense for 2013,after the major overhaul,is $__________.

Quizplus · Accepted Answer

The Answer of On January 1 2010,Max,Inc.paid $80,000 for a truck with an estimated useful life of 10 years and a $20,000 salvage value.During 2013,Max,Inc.'s truck was not running very well.
Part A: Put an X in the appropriate box to show whether each item is an expense,a capital expenditure,or neither.
  
Part B:
1.Straight-line depreciation expense for 2012 is 
$_____________________.
2.The book value of the machine at December 31,2012 is $___________________.
3.Straight-line depreciation expense for 2013,after the major overhaul,is $__________.