Would this be accumulated depriciation?

Accounting
Tutor: None Selected Time limit: 1 Day

On May 2, Bill purchased a used truck for $5,000 to use for his business. He estimates a trade-in value of $500 at the end of the estimated five-year life of the truck.

Oct 9th, 2015

Thank you for the opportunity to help you with your question!

 Meaning of accumulated depreciation- its the total amount of plant asset that has been put aside  or allocated to  the  depreciation expense since the time  it was put in service. 

In this particular case , the  accumulated depreciation will be 

5000-500....................we assume 500 to be the book value of the truck

$4500. 

 The trade in value does not reflect the market value of the truck but just ban estimation on the technique used.



Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 9th, 2015

Ask any question for fclarification

Oct 9th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Oct 9th, 2015
...
Oct 9th, 2015
Dec 11th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer