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Rzqust [24]
3 years ago
7

Required:

Business
1 answer:
Angelina_Jolie [31]3 years ago
7 0

Answer:

$567 and $3,400

Explanation:

The computation of the depreciation expense under the straight-line method is shown below:

We know that

= (Acquired value of delivery truck - residual value) ÷ (service life)  

= ($21,600 - $1,200) ÷ (6 years)  

= ($20,400) ÷ (6 years)  

= $3,400

Since the delivery truck is purchased on October 1 so, for the year 2018, the depreciation should be charged for only 2 months i.e

= $3,400 × ,400(2 months ÷ 12 months)

= $567

In this method, the depreciation expense is the same for all the service life i.e for the year 2019 it would be $3,400

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