A _______ maintains and distributes to potential creditors information regarding the creditworthiness of potential debtors. mort
1 answer:
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Answer:
Depreciation for 2019 = $12,894
Explanation:
Total cost of truck = Purchase price $80,000 + Hydraulic Lift $10,000 = $90,000
Note: Sales Tax will be refunded, thus will not form part of cost.
Insurance expense paid is for 1 year only.
Now provided salvage value = $12,000
Therefore depreciation amount = $90,000 - $12,000 = $78,000 in 10 years
As per declining method depreciation rate = (Straight line Depreciation/Cost) X 2
Straight lie depreciation = $78,000/10 = $7,800
Double declining method =
Depreciation for 2018 = $90,000 X 17.33% = $15,597
Depreciation for 2019 = $90,000 - $15,597 = $74,403 X 17.33% = $12,894