Question

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 salvage 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?

Answer 1

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!

Answer 2

Based on the cost of the truck and the salvage value as well as the useful life, the depreciation in the first year is $3,250.

What is the truck's depreciation?

First find out the annual depreciation:

= (Cost - Salvage) / Useful life

= (42,000 - 3,000) / 6

= $6,500

As it was bought in July, only 6 months have gone by:

= 6,500 / 2 semi annual periods

= $3,250

Find out more on depreciation at https://brainly.com/question/25785586.

#SPJ6