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On January 1,20A,Wilkins Company Purchased a Delivery Truck That Cost

Question 9

Multiple Choice

On January 1,20A,Wilkins Company purchased a delivery truck that cost $20,000.Cash of $15,000 was paid,and the balance of $5,000 was payable on January 31,20A.The truck has an estimated useful life of four years and no residual value.The company uses the straight-line method for amortizing all trucks.Considering only these facts,amortization expense (on the truck) for 20A,would be which of the following?


A) $5,000.
B) $10,000.
C) $15,000.
D) $20,000.

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