Regal Company acquired a delivery truck on 2009 January 2, for $107,200. The truck had an estimated salvage value of $4,800 and an estimated useful life of eight years. At the beginning of 2009, a revised estimate shows that the truck has a remaining useful life of six years. The estimated salvage value changed to $1,600. Compute the depreciation charge for 2009 and the revised depreciation charge for 2009 using the straight-line method.

Regal Company acquired a delivery truck on 2009 January 2, for $107,200. The truck had an estimated salvage value of $4,800 and an estimated useful life of eight years. At the beginning of 2009, a revised estimate shows that the truck has a remaining useful life of six years. The estimated salvage value changed to $1,600. Compute the depreciation charge for 2009 and the revised depreciation charge for 2009 using the straight-line method.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 4CE: Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the...

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