the policy loan provision means that a. an individual can take out a loan on his term policy. b. the death benefit will be incre
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Answer:
Depreciation each year is $5,805.56 and Schedule for the depreciation attached with this answer please find it.
Explanation:
Depreciation is a expense which is charged against an asset over its useful life due to wear and tear of that asset. This expense is recorded as and Expense in Income statement and accumulated in an contra asset account asset account until the disposal of the asset.
Total Cost = Truck Purchase price and Additions = $35,000 + $26,000 = $61,000
Salvage value = $8,750
Useful life = 9 years
Depreciation = ($61,000 - $8,750) / 9 = $5805.56
We will use the straight line depreciation method.
Straight line method depreciates the asset on its useful life after deducting salvage value from the cost of the asset.
