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Dennis_Churaev [7]
3 years ago
10

A company purchased a new truck at a cost of $42,000 on july 1. the truck is estimated to have a useful life of 6 years and a sa

lvage value of $3,000. the company uses the straight-line method of depreciation. how much depreciation expense will be recorded for the truck during the first year ended december 31?
Business
1 answer:
emmainna [20.7K]3 years ago
7 0
Depreciation expenses=
(Purchase cost - Salvage Value)×depreciation rate×time

Calculate the depreciation rate
100%/6years=16.6667%

Time from July 1 to December 31 there are 6 months so the time would be 6/12months

So
Depreciation expenses is
(42,000−3,000)×0.166667×(6÷12)
=3,250....answer

Hope it helps!
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