Foxrun,Inc.purchased a truck at the beginning of 2017 for $32,500.Foxrun decided to depreciate the truck over an eight-year period using the straight-line method,and estimated its residual value to be $4,500.At the beginning of 2018,Foxrun determined that a five-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 2017 and 2018

B. What factors may have influenced Foxnun to change the useful life?

Question

Foxrun,Inc.purchased a truck at the beginning of 2017 for $32,500.Foxrun decided to depreciate the truck over an eight-year period using the straight-line method,and estimated its residual value to be $4,500.At the beginning of 2018,Foxrun determined that a five-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 2017 and 2018

B. What factors may have influenced Foxnun to change the useful life?

Quizplus · Accepted Answer

The Answer of Foxrun,Inc.purchased a truck at the beginning of 2017 for $32,500.Foxrun decided to depreciate the truck over an eight-year period using the straight-line method,and estimated its residual value to be $4,500.At the beginning of 2018,Foxrun determined that a five-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 2017 and 2018

B. What factors may have influenced Foxnun to change the useful life?