A company purchased a new truck at a cost of $42,000 on July 1,2014.The truck is estimated to have a useful life of 6 years and a salvage value of $3,000.Using the straight- line method,how much depreciation expense will be recorded for the truck for the year ended December 31,2014?

Question

Quizplus · Accepted Answer

The depreciation expense for the year ended December 31, 2014, is calculated as follows:Depreciation expense = (Cost of truck - Salvage value) / Useful life= ($42,000 - $3,000) / 6= $39,000 / 6= $6,500Therefore, the depreciation expense for the year ended December 31, 2014, is $6,500.

A Company Purchased a New Truck at a Cost of $42,000