15 September, 23:35

# Company acquired a new truck at at cost of \$52,000 on January 1, 2019. The truck is expected to be used for 4 years and have a salvage value of \$8,000 at that time. The company uses the straight-line method to calculate depreciation. #1. Calculate depreciation expense for 2019 #2 Calculate depreciation expense for 2020 #3 Calculate accumulated depreciation as of 12/31/2019 #4 Calculate accumulated depreciation as of 12/31/2020 #5 Calculate the book value as of 12/31/2020

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1. 15 September, 23:49
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The computation is shown below:

= (Original cost - residual value) : (useful life)

= (\$52,000 - \$8,000) : (4 years)

= (\$44000) : (4 years)

= \$11,000

In this method, the depreciation is same for all the remaining useful life

a. The depreciation expense for 2019 is \$11,000

b. The depreciation expense for 2020 is \$11,000

c. The accumulated depreciation for year 2019 is \$11,000

d. The accumulated depreciation for year 2020 is \$22,000 (\$11,000 + \$11,000)

e. The book value is

= Original cost - accumulated depreciation

= \$52,000 - \$22,000

= \$30,000