Fabian Woodworks
This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of five years, or 100,000 hours of operation. The truck was purchased on January 1, Year 1, and was used for 27,000 hours in Year 1 and 26,000 hours in Year 2.
-Refer to the figure Fabian Woodworks.If the company uses the straight-line method of depreciation,what is the book value on December 31,Year 2?
A) $4,000
B) $6,000
C) $8,000
D) $10,000
Correct Answer:
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