**Text for Educational Website:**### Depreciation Problem: Marino Moving Company**Scenario:**On January 1, Year 1, Marino Moving Company paid $64,000 in cash to purchase a truck. The truck is expected to have a useful life of four years and a salvage value of $4,000. If Marino uses the straight-line depreciation method, what is the accumulated depreciation shown on the Year 2 balance sheet?**Multiple Choice Options:**- $16,000- $45,000- $30,000- $32,000**Explanation of the Straight-Line Depreciation Method:**The straight-line depreciation method allocates an equal amount of the depreciable cost of an asset over its useful life. - **Depreciable Base:** Cost of Truck - Salvage Value = $64,000 - $4,000 = $60,000- **Annual Depreciation Expense:** Depreciable Base / Useful Life = $60,000 / 4 years = $15,000 per year- **Accumulated Depreciation at the End of Year 2:** Year 1 Depreciation + Year 2 Depreciation = $15,000 + $15,000 = $30,000Thus, the correct answer is **$30,000**.

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Description: **Text for Educational Website:**### Depreciation Problem: Marino Moving Company**Scenario:**On January 1, Year 1, Marino Moving Company paid $64,000 in cash to purchase a truck. The truck is expected to have a useful life of four years and a salvag

Introduction: As per straight-line method, annual depreciation is charged on the basis of expected…

Business

Accounting

On January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was expected to have a four year useful life and a $4,000 salvage value. If Marino uses the straight- line method, the accumulated depreciation shown on the Year 2 balance sheet is Multiple Choice O O O о $16,000 $45,000 $30,000 $32,000

On January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was expected to have a four year useful life and a $4,000 salvage value. If Marino uses the straight- line method, the accumulated depreciation shown on the Year 2 balance sheet is Multiple Choice O O O о $16,000 $45,000 $30,000 $32,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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