On January 1, 2013, Fritz Company purchased a truck that cost $38,000. The truck had an expected useful life of 8 years and an $8,000 salvage value. The book value of the truck at the end of 2013, assuming that Fritz uses the double declining balance method, is:

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Quizplus · Accepted Answer

$38,000 x (2 x 12.5%) = $9,500 Depreciation expense for 2013; $38,000 - $9,500 = $28,500 book value at the end of 2013

On January 1, 2013, Fritz Company Purchased a Truck That