Futronics purchased a truck at the beginning of Year 1 for $41,500 and decided to depreciate it over a six-year period using the straight-line method.The estimated residual value was $5,500.At the beginning of Year 2,the company determined that a four-year life should have been used to depreciate the truck.The estimated residual value was not affected by the revision in the asset's life.
A) Determine the amounts to be recorded as depreciation expense for Year 1 and Year 2.

Question

Futronics purchased a truck at the beginning of Year 1 for $41,500 and decided to depreciate it over a six-year period using the straight-line method.The estimated residual value was $5,500.At the beginning of Year 2,the company determined that a four-year life should have been used to depreciate the truck.The estimated residual value was not affected by the revision in the asset's life.
 A) Determine the amounts to be recorded as depreciation expense for Year 1 and Year 2.

Quizplus · Accepted Answer

The Answer of Futronics purchased a truck at the beginning of Year 1 for $41,500 and decided to depreciate it over a six-year period using the straight-line method.The estimated residual value was $5,500.At the beginning of Year 2,the company determined that a four-year life should have been used to depreciate the truck.The estimated residual value was not affected by the revision in the asset's life.
 A) Determine the amounts to be recorded as depreciation expense for Year 1 and Year 2.

Futronics Purchased a Truck at the Beginning of Year 1