The Oberon Company purchased a delivery truck for $95,000 on January 2. The truck was estimated to have a $3,000 salvage value and a 4 year life. The truck was depreciated using the straight-line method. At the beginning of the third year, it was obvious that the truck's total useful life would be 6 years rather than 4, and the salvage at the end of the 6^th year would be $1,500. Determine the depreciation expense for the truck for the 6 years of its life.

Question

Quizplus · Accepted Answer

The Answer of The Oberon Company purchased a delivery truck for $95,000 on January 2. The truck was estimated to have a $3,000 salvage value and a 4 year life. The truck was depreciated using the straight-line method. At the beginning of the third year, it was obvious that the truck's total useful life would be 6 years rather than 4, and the salvage at the end of the 6^th year would be $1,500. Determine the depreciation expense for the truck for the 6 years of its life.

The Oberon Company Purchased a Delivery Truck for $95,000 on January