If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will be the book value of the truck at the year end? a. OMR 32,000 b. OMR 30,000 C. OMR 2,000 d. OMR 28,000
If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will be the book value of the truck at the year end? a. OMR 32,000 b. OMR 30,000 C. OMR 2,000 d. OMR 28,000
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
![If the cost of the truck is OMR 30,000 and the
annual depreciation expense OMR 2,000. How
much will be the book value of the truck at the
year end?
a. OMR 32,000
b. OMR 30,000
c. OMR 2,000
d. OMR 28,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F873909b8-b87d-4300-a266-d84b3bf56f88%2Fb6cb8977-a071-4031-bdd8-b02a2ecaeefb%2Fboxm366_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the cost of the truck is OMR 30,000 and the
annual depreciation expense OMR 2,000. How
much will be the book value of the truck at the
year end?
a. OMR 32,000
b. OMR 30,000
c. OMR 2,000
d. OMR 28,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College