Calloway Shoes purchased a delivery truck on September 30, 2013, for $32,000. The estimated useful life of the truck is 10 years with no residual value. After five years, the refrigeration unit will need to be replaced. The $8,000 cost of the unit is included in the cost of the truck. Calloway uses the straight-line depreciation method. Depreciation for 2013 under U.S. GAAP and International Financial Reporting Standards (IFRS), respectively, is:

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The Answer of Calloway Shoes purchased a delivery truck on September 30, 2013, for $32,000. The estimated useful life of the truck is 10 years with no residual value. After five years, the refrigeration unit will need to be replaced. The $8,000 cost of the unit is included in the cost of the truck. Calloway uses the straight-line depreciation method. Depreciation for 2013 under U.S. GAAP and International Financial Reporting Standards (IFRS), respectively, is:

Calloway Shoes Purchased a Delivery Truck on September 30, 2013