Blg Trucking Company has purchased a $100,000 dump truck that has a uselul life of 8 years. After the first year of use, the marketvalue of the dump truck falls to $70,000. What are the accounting and economic depreciation of the truck, respectively?O S30000, S12500O S70000, 825000• $12500, S30000O S10000, $10000

Here we calculate the accounting and economic depreciation of the truck by using the given information and choose the correct option , so the calculation of the following by using the given information which are as follow-C ) 12500 , 30,000 because here , Accounting depreciation charged over the useful life of an asset. Price of Truck= $100,000 Useful life = 8 years. Accounting Depreciation = Price of truck/ Useful life in years Accounting Depreciation= $100,000/ 8 Accounting Depreciation= $12,500 so here we conclude that here Accounting Depreciation is $12500 Economic depreciation is the decrease in market value of the truck after one year. Economic Depreciation = $ 100,000 - $70,000 Economic Depreciation= $30000 so here we conclude that here Economic Depreciation is $30,000 so as per calculation here we conclude that ,only option C is correct

Business

Economics

Bg Trucking Company has purchased a $100,000 dump truck that has a uselul ife of 8 years. After the first year of use, the market vale of the dump truck lalls to $70,000. What are the accounting and economic depreciation of the truck, respectively? O 30000, $12500 $70000, $25000 O $12500, S30000 $10000, $10000

Bg Trucking Company has purchased a $100,000 dump truck that has a uselul ife of 8 years. After the first year of use, the market vale of the dump truck lalls to $70,000. What are the accounting and economic depreciation of the truck, respectively? O 30000, $12500 $70000, $25000 O $12500, S30000 $10000, $10000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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