A truck was purchased for $120,000 and it was estimated to have a $24,000 salvage value at the end of its useful life. A monthly depreciation expense of $2,000 was recorded using the straight-line method. The annual depreciation rate is: a. 20% b. 2% c. 8% d. 25%

A truck was purchased for $120,000 and it was estimated to have a $24,000 salvage value at the end of its useful life. A monthly depreciation expense of $2,000 was recorded using the straight-line method. The annual depreciation rate is: a. 20% b. 2% c. 8% d. 25%

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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Question

100%

What is the annual depreciation rate on these general accounting question?

A truck was purchased for $120,000 and it was estimated to have a $24,000
salvage value at the end of its useful life. A monthly depreciation expense
of $2,000 was recorded using the straight-line method. The annual
depreciation rate is:
a. 20%
b. 2%
c. 8%
d. 25%

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