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lara [203]
3 years ago
9

Sunland Chemicals Company acquires a delivery truck at a cost of $30,400 on January 1, 2022. The truck is expected to have a sal

vage value of $3,200 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the straight-line method.
Business
1 answer:
liraira [26]3 years ago
8 0

Answer:

$6,800 and $6,800

Explanation:

The computation of the depreciation expense for the first year and the second year using the straight line method is shown below:

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

= ($30,400 - $3,200) ÷ (4 years)

= ($27,200) ÷ (4 years)  

= $6,800

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

Therefore for the first and second year, the same depreciation expense i.e $6,800 should be charged separately in each year

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