A truck costs $16,000 with a residual value of $1,000. It has an estimated life of five years. If

Business & Finance
Tutor: None Selected Time limit: 1 Day

A truck costs $16,000 with a residual value of $1,000.  It has an estimated life of five years.  If the truck was bought on July 3, what would the book value at the end of year 1 using straight-line tare?

Jun 1st, 2015

Depreciation=(16000-1000)*1/5*6/12=

$1500 depreciates on the first year

Book value =(16000-1500)=14500 for the first year


Jun 1st, 2015

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