**Lena Horn bought a Toyota Tundra on January 1 for $30,800 with an estimated life of 6 years. The residual value of the truck is $4,400. Assume a straight-line method of depreciation.****a. What will be the book value of the truck at the end of year 4?**- Book value [ ]**b. If the Tundra was bought the first year on April 12, how much depreciation would be taken the first year?**- Depreciation [ ]

a. Depreciation per annum = ( Cost - Salvage value) / Useful life

Answered: Lena Horn bought a Toyota Tundra on…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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