On January 1, Year 1, Marino Moving Company paid $50,500 cash to purchase a truck. The truck was expected to have a four-year useful life and an $9,000 salvage value. Marino uses the straight-line method. On January 1, Year 3, Marino’s accounting records contained the following balances: Truck $50,500 Accumulated Depreciation $20,750 Also, on January 1, Year 3 the company paid $12,500 to replace the engine to make the truck better by enabling it to operate using less expensive natural gas. Based on this information, the balance in the accumulated depreciation shown on the Year 3 balance sheet is: Multiple Choice $29,750. $16,625. $37,375. $20,750.
On January 1, Year 1, Marino Moving Company paid $50,500 cash to purchase a truck. The truck was expected to have a four-year useful life and an $9,000 salvage value. Marino uses the straight-line method. On January 1, Year 3, Marino’s accounting records contained the following balances: Truck $50,500 Accumulated Depreciation $20,750 Also, on January 1, Year 3 the company paid $12,500 to replace the engine to make the truck better by enabling it to operate using less expensive natural gas. Based on this information, the balance in the accumulated depreciation shown on the Year 3 balance sheet is: Multiple Choice $29,750. $16,625. $37,375. $20,750.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, Year 1, Marino Moving Company paid $50,500 cash to purchase a truck. The truck was expected to have a four-year useful life and an $9,000 salvage value. Marino uses the straight-line method. On January 1, Year 3, Marino’s accounting records contained the following balances:
Truck $50,500
Accumulated Depreciation $20,750
Also, on January 1, Year 3 the company paid $12,500 to replace the engine to make the truck better by enabling it to operate using less expensive natural gas. Based on this information, the balance in the accumulated depreciation shown on the Year 3 balance sheet is:
Multiple Choice
-
$29,750.
-
$16,625.
-
$37,375.
-
$20,750.
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